Starboard sees an opportunity to create value at Riot Platforms amid growth in hyperscalers

Riot Platforms is a bitcoin mining and digital infrastructure company.

It has bitcoin mining operations in central Texas and Kentucky , and electrical switchgear engineering and fabrication operations in Denver .

Starboard is a successful activist investor and has extensive experience helping companies focus on operational efficiency and margin improvement.

The company trades at one of the cheapest multiples in the industry on the basis of enterprise value.

Bitcoin mining firms that have already shifted capacity to HPC have delivered an average YTD return of 105.8% versus an average of -3.4% for peers who had not yet announced plans to do so ( Riot , Mara Holdings, and CleanSpark ) Riot is in an excellent position to capitalize on the massive opportunity presented by leasing capacity to hyperscalers.

Ken Squire is the founder and president of 13D Monitor , an institutional research service on shareholder activism, and the founder of the 13D Activist Fund .

Riot Platforms is owned in the fund, which invests in a portfolio of activist 13D investments.

Squire: Management could forego billions of dollars in value and put itself on a path of a potential distracting and expensive proxy fight with Starboard .