Riot Platforms, Inc. ( RIOT ) shares are trading higher Thursday following a WSJ report indicating activist investor Starboard Value has taken a stake in the bitcoin mining company.

What To Know: According to The Wall Street Journal, Starboard is pressuring Riot to change its operations, wanting the company to convert part of its bitcoin mining facilities into data centers designed to support hyperscalers. Hyperscalers are large-scale users of computing and storage power, such as Amazon Web Services and Google Cloud.

Riot's management has confirmed that it has been in discussions with Starboard and has welcomed the input. The company reiterated its commitment to creating value for its shareholders and stated that it would continue to explore options for strategic growth.

This shift would take advantage of growing demand for computing infrastructure fueled by the rise of artificial intelligence. Riot has previously indicated that it would consider such deals if the terms were favorable.

Benzinga has reached out to Riot Platforms ( RIOT ) for comment.

Earlier this year, the company pursued a merger with Bitfarms, another Bitcoin miner. Riot acquired nearly 20% of Bitfarms and aimed to create the largest publicly traded bitcoin mining operation. However, full merger talks did not result in a deal. Riot ultimately settled for a board seat at Bitfarms in September.

The push from Starboard is potentially part of a broader trend within the cryptocurrency sector. Other bitcoin miners, such as Core Scientific Inc. ( CORZ ) , have started repurposing their infrastructure for data-center use to support AI and cloud-computing demands.

Starboard Value has been active in pushing for changes at other companies, including Autodesk, Match Group, Pfizer and Kenvue.

RIOT Price Action: Riot Platforms ( RIOT ) shares were up 9.15% at $12.85 at the time of writing, according to Benzinga Pro.

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