Jeff Smith's Starboard Value reduced its position in Riot Platforms by 35% during the second quarter, selling 5.43 million shares. According to a delayed 13F filing from August 14, the activist fund's stake fell to 10.11 million shares. Despite the significant share sale, the reported value of Starboard's holding rose from $192.13 million to $276.94 million in the quarter, indicating a substantial increase in RIOT's stock price during the period.
The trade came as Riot Platforms executes a strategic shift from its origins as a bitcoin miner to a developer of large-scale data centers for artificial intelligence clients. [5, 7] Just after the reporting period on August 10, Riot announced a landmark 20-year data center lease with a major AI lab. [7, 8] Starboard's remaining holding is significant, with its portfolio weight increasing from 4.20% to 6.12% due to the stock's appreciation.