In a letter sent on February 18 activist investor Starboard Value LP called on Riot Platforms to urgently execute its transition from bitcoin mining to a premier artificial intelligence and high-performance computing (AI/HPC) data center provider.

Starboard: Riot Platforms sitting on a multi-billion dollar AI payday

“We believe Riot is on its way to a transformation from a bitcoin miner to a best-in-class AI/HPC
data center company,” Starboard said in the letter.

While praising recent governance improvements, Starboard warned that “time is of the essence” as the company continues to underperform its peers.

Starboard highlighted Riot Platform’s “massive” opportunity, centered on its 1.7GW of available power across two flagship sites in Corsicana and Rockdale, Texas. As the AI industry faces severe power constraints and multi-year grid interconnection delays, Starboard contends that Riot’s already-powered sites are among the most attractive in the nation.

The investor pointed to Riot’s January 2026 deal with Advanced Micro Devices (AMD) as a “positive signal” and proof of concept. Under the agreement, AMD committed to 25MW which is expected to generate $311 million in revenue over a 10-year term with an 80% EBITDA margin.

Starboard’s analysis suggests Riot is also significantly undervalued. If Riot successfully monetizes its remaining 1.4GW of capacity in line with recent industry transactions, it could generate over $1.6 billion in annual EBITDA. Using valuation multiples of 12.5x to 20x, Starboard estimates the AI/HPC business alone could contribute between $9 billion and $21 billion in equity value, implying a share price of $23 to $53.

Despite these prospects, Starboard Managing Member Peter Feld noted that Riot’s stock has materially lagged behind peers who signed larger AI deals earlier. The letter urged Riot to focus on “highest-quality” investment-grade tenants and warned that if management cannot execute quickly, the company should consider itself a candidate for consolidation due to the scarcity of its power assets.

“Riot is now positioned to focus on executing its AI/HPC strategy,” Feld wrote, “but it must execute with excellence and urgency”^.

TLDR:

• Ether.fi Cash processes 28,000 daily spend transactions averaging $2 million in volume, doubling every two months. 
• The migration covers 70,000 active cards, 300,000 accounts, and millions in user TVL moving to OP Mainnet. 
• OP Stack processed 3.6 billion transactions in H2 2025, accounting for 13% of all global crypto transactions. 
• ether.fi users will access OP token rewards, 3%+ cashback, travel perks, and free metal cards post-migration.

Ether.fi is migrating its flagship Cash product to Optimism’s OP Mainnet. The move covers roughly 70,000 active cards and 300,000 accounts.

Millions in user TVL will also transfer to the new network. The migration is part of a long-term OP Enterprise partnership.

Together, the teams aim to accelerate on-chain global payments. This positions OP Mainnet as a leading destination for payment activity in the broader crypto ecosystem.

Ether.fi Cash Brings Scale and Speed to OP Mainnet

Ether.fi Cash is a non-custodial digital banking product combining a credit card with a savings account. It runs DeFi protocols under the hood to generate yield for users.

The product allows movement between fiat and crypto while offering cashback and global spending. Users manage their assets without giving up custody.

Since launching last year, the product has grown quickly. Each day, the app processes 2,000 internal swaps and 28,000 spend transactions.

Daily spend volume averages around $2 million. These numbers have roughly doubled every two months since launch.

The migration to OP Mainnet will expand liquidity access for users making swaps. They will also gain access to more assets for deposits and withdrawals.

Gas fees and network costs for card transactions will be covered by ether.fi. More cashback rewards are also planned as part of the move.

For end users, the transition is designed to be seamless. Optimism has managed major ecosystem migrations before and has a structured process in place. Users should not experience disruption during the switch to the new network.

What the OP Enterprise Partnership Means for Ether.fi

As an OP Enterprise customer, Ether.fi gains access to several infrastructure benefits. These include established liquidity, a dedicated account manager, and priority access to new features. The same codebase works across all OP Stack chains, which reduces development overhead.

The OP Stack processed 3.6 billion transactions in the second half of 2025. That represented 13 percent of all crypto transactions during that period. OP Mainnet serves as a hub for DeFi activity and a launchpad for consumer apps.

As part of the integration, ether.fi users will receive access to OP token rewards. Ongoing reward programs include 3% or more cashback, in-app campaigns, travel discounts, and free metal cards. Membership tiers and lounge access are also part of the package.

ether.fi sees blockchain infrastructure as a way to expand globally at a lower cost than traditional fintech. Operating non-custodially allows the platform to scale without the overhead traditional banks carry.

The partnership with Optimism supports that model with enterprise-grade tools and network depth.

United States Federal Reserve policymakers discussed the possibility of interest rate increases last month, according to newly released comments from a January meeting.

The minutes of the Federal Open Market Committee meeting from late January were released on Wednesday, revealing that some policymakers were mulling a rate hike due to stubbornly high inflation. 

Several participants indicated that they would support “the possibility that upward adjustments to the target range for the federal funds rate could be appropriate if inflation remains at above-target levels,” the minutes stated. 

Central bank policymakers voted to keep interest rates unchanged at 3.5% to 3.75% at their January meeting after cutting rates three times at the end of 2025, from 4.5% to current levels.

If enacted, it would be the first rate hike since July 2023. However, CME futures markets indicate a 94% probability that rates will remain unchanged at the Fed’s next meeting on March 18. 

The Federal Reserve has two primary mandates for its policy on rates: inflation and the labor market. 

High inflation concerns persist 

The minutes also revealed that there is a significant “hawkish” contingent that is not yet ready to commit to further cuts. 

Some participants commented that it would likely be appropriate to “hold the policy rate steady for some time” to give them more time to assess economic data. 

However, a number of these participants judged that “additional policy easing may not be warranted until there was a clear indication that the progress of disinflation was firmly back on track.”

Related: Why Bitcoin has recently reacted more to liquidity conditions than to rate cuts

Most participants cautioned that progress toward the 2% inflation objective “might be slower and more uneven than generally expected,” judging that there was a meaningful risk of it remaining above the target. 

If inflation were to decline in line with expectations, rate reductions “would likely be appropriate,” the minutes stated.  

US inflation as measured by the Consumer Price Index (CPI) is currently 2.4%, having increased 0.2% in January, according to the Bureau of Labor Statistics.  

Rate hikes are typically bad for crypto prices

Higher rates are generally bearish for high-risk assets such as crypto, as safer assets like Treasury bonds or cash offer better returns with no risk. 

Higher rates also make borrowing more expensive, which reduces speculative activity, leverage, and venture capital investments. 

Crypto market sentiment, which is already at rock bottom, could also be further hit by a hawkish Federal Reserve. 

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