| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| - | - | - |
Starboard Value sees Riot Platforms as a compelling transformation from bitcoin mining to AI/HPC data centers. The company possesses 1.7GW of fully available power at two prime Texas sites near Dallas and Austin, positioning it advantageously in a market where power availability is the primary constraint for AI buildout. The recent AMD deal demonstrates execution capability, generating $311 million revenue over 10 years with 80% EBITDA margins from just 25MW capacity. If Riot monetizes its remaining 1.4GW at recent precedent rates, it could generate over $1.6 billion annual EBITDA, implying $23-53 per share value versus current underperformance. Key risks include execution urgency in a dynamic market and grid interconnection delays. Catalysts include exponential AI capacity scaling plans and strengthening power markets. Starboard emphasizes the need for accelerated deal completion while noting potential consolidation interest if execution falters. The transformation requires completing governance improvements and maintaining focus on high-quality, investment-grade tenants rather than headline lease rates.
Riot Platforms represents a compelling transformation story from bitcoin mining to AI/HPC data centers, with 1.7GW of fully available power at prime Texas locations that could generate $1.6+ billion of annual EBITDA and drive share price to $23-53 per share.
Starboard believes Riot is on its way to transformation from a bitcoin miner to a best-in-class AI/HPC data center company, but time is of the essence given the dynamic market environment. Should execution prove challenging, Riot could be an exciting consolidation candidate with significant interest in its premier power assets.
| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Feb 18 2026 | 2025 Q4 | AMD, APLD, CIFR, DLR, EQIX, HUT, RIOT, WULF | Activist, AI, crypto, Data centers, Power, value | RIOT | Riot is positioned to capitalize on the massive AI/HPC data center opportunity as AI companies scale capacity exponentially. The company's sites are well-suited for AI training, inference, edge computing, and various data center applications, with power being the biggest constraint for AI buildout. Riot's transformation from bitcoin mining to AI/HPC data centers represents tremendous value creation potential. The company has 1.7GW of fully available power at prime locations that could generate over $1.6 billion of annual EBITDA if monetized at recent precedent transaction rates. Cryptocurrency mining companies have become attractive sources of near-term power capacity for AI/HPC companies. From August to year-end 2025, four crypto mining companies announced AI/HPC deals for approximately 1.4GW of gross capacity at attractive leasing rates. |
| Oct 21 2025 | 2025 Q3 | TRIP | AI, Data monetization, M&A, Online travel, valuation |
TRIP TRIP |
Starboard Value highlights Tripadvisors undervaluation and strategic opportunities across its businesses. The firm advocates for a sale of TheFork, margin improvement at Viator, and AI-driven monetization of Tripadvisors travel data. The presentation positions AI partnerships and corporate restructuring as key catalysts for value creation. |
| Jul 15 2024 | 2024 Q2 | MTCH | - | - | |
| Jun 17 2024 | 2024 Q1 | ADSK | - | - | |
| Jan 31 2024 | 2023 Q4 | GDDY | - | - | |
| Oct 31 2023 | 2023 Q3 | CRM, FTRE, GDDY, SPLK, VERT, WIX | - | - |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2025 Q4 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
CryptoFund focuses exclusively on Bitcoin accumulation through disciplined cycle-aware positioning. Manager shifted to defensive posture in Q3 anticipating correction, ending Q4 with two-thirds Bitcoin and one-third cash. Going forward, fund will hold only Bitcoin based on data showing altcoins have terrible odds with only 1-in-70 beating Bitcoin historically. |
Bitcoin Altcoins Cycles Accumulation Volatility | |
Data CentersSupply constraints curtailing infrastructure buildout rate, but compute capacity is being used immediately upon coming online. This differs from dot-com bubble when dark fiber was installed ahead of need. Labor, power and land shortages creating bottlenecks. |
Supply Constraints Utilization Bottlenecks Infrastructure | |
| 2025 Q3 |
AIAI has been integrated into RGA's research process through tools like NotebookLM, Gems in Gemini, and Claude Code. The firm views AI as a force multiplier for human judgment rather than a replacement, emphasizing the Kasparov Law principle. They believe the market narrative around AI displacement is swinging to unhelpful extremes, creating investment opportunities. |
Machine Learning Automation Software Productivity Innovation |
M&A |
||
Technology |
| Date | Pitch Type | Author | Ticker | Company | Industry | Sub Industry | Bull / Bear | Exchange | Keywords | Action |
|---|---|---|---|---|---|---|---|---|---|---|
| Oct 21, 2025 | Fund Letters | Jeffrey Smith | TRIP | Tripadvisor Inc. | Consumer Discretionary | Online Travel Services | Bull | NASDAQ | Activism, AI data, Experiences, Governance, margin expansion, spin-off, valuation | Login |
| Oct 21, 2025 | Fund Letters | Jeffrey Smith | TRIP | Tripadvisor Inc. | Consumer Discretionary | Online Travel Services | Bull | NASDAQ | Activism, AI data, Experiences, Governance, margin expansion, spin-off, valuation | Login |
| Feb 18, 2026 | Fund Letters | Jeffrey Smith | RIOT | Riot Platforms, Inc. | Information Technology | Data Center REITs | Bull | NASDAQ | Activism, AI, data centers, infrastructure, monetization, Power, valuation | Login |
| TICKER | COMMENTARY |
|---|---|
| AMD | AMD was mentioned as an example of businesses that already make money, have shown they can do so through cycles and are priced so that we do not need everything to go right. |
| APLD | Some of our top performing closed positions: APLD 168% |
| CIFR | D-Wave Quantum , Cipher Mining Inc., TeraWulf Inc., and Hut 8 Corp were up an average of 164%. |
| DLR | We continue to hold Digital Realty and Equinix at a level roughly in line with our benchmark since the risks outlined above are not likely to impact fundamentals over the near term. In fact, most of the recent leasing each REIT has done is with investment-grade companies. We consider those money-good deals. What is less knowable over the near term is how sentiment might change, which in this sector is a powerful driver of short-term stock performance. For now, we feel content to hold on to the fund's data center investments, but remain attentive to changes afoot in chip technology, energy production and energy transmission, as well as any potential regulatory hurdles to data center growth. |
| EQIX | Data center operator Equinix should benefit from the growing importance of sharing data across clouds, but the returns on a large capital spending project will delay revenue growth acceleration until 2027. We view the company as a later stage AI beneficiary, especially if all the current spending begins to produce a positive return on investment. |
| HUT | We also initiated a position in Hut 8 during the quarter. On December 17, Hut 8 announced a 15-year, 245 MW data centre lease to Anthropic at their River Bend campus in Louisiana, backstopped by Google (AA+ credit), with a total contract value of US$7 billion. We bought the stock that day. At mid-point build cost estimates and before capitalised interest, the project yields ~15% unlevered in year one, rising with 3% annual escalators over the lease term. |
| RIOT | Riot's share price has materially underperformed peers who have signed sizable AI/HPC deals. Although this underperformance is frustrating, we believe that Riot is better positioned to do higher-quality deals than its peers. Time is of the essence, and a renewed sense of urgency is required to get more material deals completed. Riot announced its inaugural data center deal on January 16, 2026 with AMD, demonstrating the Company's ability to attract highly sophisticated, investment-grade tenants. In the initial deal, AMD committed to take 25 CIT MW that can expand to 200 CIT MW. The initial 25MW lease is expected to generate $311 million of revenue across an initial 10-year term with an EBITDA margin of ~80%. This translates to $1.24 million of annual revenue and $1 million of EBITDA per CIT MW. Critically, the Company can retrofit existing infrastructure at Rockdale for a capex cost of just $3.6 million per CIT MW, which is meaningfully below precedent AI/HPC transactions, making the yield-on-cost highly attractive. |
| WULF | TeraWulf Inc. represents 1.8% of the strategy in the Information Technology sector. |
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