Starboard Urges Riot Platforms to Repurpose 1.7 GW Texas Sites for $1.6 B AI Profit
Riot Platforms’ Bitcoin mining profits have collapsed as the all-in cost to mine one Bitcoin reached $89,000 while prices trade at $60,000–$70,000. Activist investor Starboard Value urged Riot to convert its 1.7 GW Corsicana and Rockdale Texas power sites into AI data centers, projecting over $1.6 billion annual profit.
1. Declining Bitcoin Mining Profitability
Riot Platforms’ cost to mine one Bitcoin, including power and overhead, has climbed to approximately $89,000 while market prices range between $60,000 and $70,000. Monthly mining output fell 14% in November 2025 and 11% in December 2025 year-over-year, and the company sold 1,818 Bitcoins in December for $161.6 million to shore up cash.
2. Starboard’s Push for an AI Pivot
Starboard Value, the company’s fourth-largest shareholder at the end of 2025, delivered a letter urging Riot to accelerate its move into AI data hosting. The investor highlighted Riot’s two Texas sites—Corsicana and Rockdale—with a combined 1.7 GW capacity as ideal for high-performance computing leases and noted that earlier action could lock in competitive advantage.
3. AI Data Centers as a Strategic Opportunity
Riot CEO Jason Les has explored AI applications and signed a deal with AMD, suggesting data center leases could yield higher, steadier margins than Bitcoin mining. Leasing space and power at comparable facilities has generated over $1.6 billion in annual profit, and at least eight other Bitcoin miners are already shifting toward AI hosting to stabilize revenues.