The Big Stake: Riot Platforms, Inc. Increases Ownership in Bitfarms Ltd.
Riot Platforms, Inc. (NASDAQ: RIOT) has recently announced a significant increase in their stake in Bitfarms Ltd., aiming to impact the company’s board composition and strategic direction. This move is part of Riot’s broader plan to influence the operations of Bitfarms and steer it towards their objectives.
Acquisition Breakdown
On August 2, 2024, Riot Platforms acquired 380,838 common shares of Bitfarms, amounting to approximately 0.08% of the total issued common shares. These shares were bought on the Nasdaq Stock Market at an average price of around US$2.40 per share, totaling approximately US$914,468.21.
- Riot previously owned 75,886,480 common shares, which accounted for 16.82% of Bitfarms’ total shares.
- Following the recent purchase, Riot’s ownership increased to 76,267,318 shares, representing 16.9% of the company.
Strategic Moves
Riot has been actively working to influence Bitfarms’ corporate governance. The company requisitioned a special shareholders meeting on June 24, 2024, with the aim of removing Bitfarms’ Chairman Nicolas Bonta and directors Andrés Finkielsztain and Fanny Philip. Riot has put forward three independent candidates to replace them.
- Riot’s intentions include a thorough review of its investment in Bitfarms based on factors like current market conditions, the financial status of the company, and strategic discussions with Bitfarms’ board and advisors.
- Riot may consider adjusting its stake, increasing or decreasing it, or suggesting further actions to align Bitfarms’ strategy with its own goals.
Outlook and Statements
Riot Platforms has clarified that this recent acquisition and associated actions do not constitute a formal offer to buy or sell any securities of Bitfarms. The company plans to file an Early Warning Report as per Canadian securities regulations, which will be accessible on the SEDAR+ platform.
Riot’s vision is centered around becoming a prominent Bitcoin-driven infrastructure platform with operations in Bitcoin mining and digital infrastructure, particularly in central Texas and Denver, Colorado.
For additional details, you can visit Riot Platforms’ official website at riotplatforms.com
Hot Take: A New Era for Bitfarms and Riot Platforms, Inc.
As Riot Platforms, Inc. secures a significant stake in Bitfarms Ltd., the landscape of both companies’ operations and strategies is set to evolve. With a heightened ownership percentage, Riot is poised to steer Bitfarms towards shared objectives, potentially reshaping the future of both entities in the crypto market. Stay tuned for further developments in this partnership that could have far-reaching implications for the industry.
By
By
By
By
By