Starboard Urges Bitcoin Miner Riot to Speed Up Shift to Data Centers

Activist investor Starboard Value is pressuring Riot Platforms Inc. to accelerate its pivot from Bitcoin mining to data center operations, targeting hyperscale cloud tenants. The push comes via a private letter reviewed by Bloomberg, urging Riot to capitalize on surging demand for AI and cloud infrastructure by repurposing its facilities. Riot’s existing energy-intensive mining sites could be retrofitted into high-margin data centers, leveraging its power contracts and infrastructure for hyperscalers like AWS or Google Cloud. Starboard’s move reflects broader industry shifts as Bitcoin mining profitability declines post-halving, while data center demand soars due to AI workloads and cloud expansion. The letter signals growing investor impatience with Riot’s transition pace, framing data centers as a more sustainable, high-growth alternative to volatile crypto mining.