Jeff Smith’s Top 10 Activist Targets and Their Returns Compared to the S&P 500

Page 9 of 9

1. Riot Platforms Inc. (NASDAQ:RIOT)

Position Initiated: December 2024

Value of the Stake: N/A

Stock Return Since December 2024 to April 2025: -43.67%

S&P 500 Return Since December 2024 to April 2025: -10.32%

Number of hedge funds holding stakes: 37

Riot Platforms Inc. (NASDAQ:RIOT) is a Bitcoin mining and digital infrastructure company. It operates Bitcoin mining and data centers in Texas and engineering and fabrication facilities in Colorado. Activist investor Starboard Value LP acquired a significant stake in the company in December of 2024 amid expectations of operational and value-creation opportunities.

Starboard Value LP’s investment came as Bitcoin was edging higher on expectations of a friendly regulatory environment on Donald Trump winning the 2024 presidential elections. The investment also came amid reports that the hedge fund had been in discussions with the management team about the possibility of converting some of the company’s bitcoin mining facilities into a capacity for hyperscalers or large data center users to capitalize on the artificial intelligence boom.

Due to AI mania, several other Bitcoin miners have been competing to exploit the shortage of data center space and the high power requirements. In order to provide power infrastructure for the cloud computing company’s operations, Starboard Value LP wants to see Riot Platforms Inc. (NASDAQ:RIOT) following in the footsteps of bitcoin miner Core Scientific.

While we acknowledge the potential of Riot Platforms Inc. (NASDAQ:RIOT), our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RIOT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9