Summary
- Activist fund Starboard Value said it is urging Bitcoin miner Riot Platforms to expand into AI and HPC infrastructure.
- Starboard said Riot could generate an additional $9 billion to $21 billion in value by using its strategic Texas assets for AI and HPC workloads.
- Starboard warned that if Riot fails to move quickly to capitalize on AI infrastructure demand, it could become an M&A target and is lagging behind competitors.
Activist fund Starboard Value has urged Bitcoin (BTC) miner Riot Platforms to expand into artificial intelligence (AI) and high-performance computing (HPC) infrastructure.
According to The Block, a digital-asset (cryptocurrency) news outlet, Starboard said in a report that Riot could unlock an additional $9 billion to $21 billion in value if it deploys its strategic assets in Texas for AI and HPC workloads. The firm added that such a shift would also put the company in a stronger position to attract clients.
“Riot Platforms has a tremendous value-creation opportunity,” Starboard said, warning that the company could become a target for mergers and acquisitions (M&A) if it fails to capitalize quickly on rising demand for AI infrastructure. It added that Riot is lagging behind its peers.
In recent months, some Bitcoin miners have been pushing into data centers and AI infrastructure to diversify revenue streams. Against that backdrop, Starboard stressed the need for a strategic pivot at Riot.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
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