Riot Platforms Increases Stake in Bitfarms
Riot Platforms recently announced the acquisition of an additional 1,432,063 shares of Bitfarms, investing around $3.87 million in the company. This move boosts Riot’s total holdings to approximately 57.62 million shares, representing about 14% of Bitfarms.
Riot’s Ongoing Takeover Attempt
Riot’s latest purchase is part of its ongoing bid to acquire Bitfarms. In May, Riot made a move to acquire Bitfarms for approximately $950 million, securing a 9.25% stake. Following this, Riot expanded its ownership by acquiring 1.5 million more shares earlier this month.
- Bitfarms responded to Riot’s aggressive acquisition strategy by adopting a “poison pill” defense mechanism to deter the takeover. This strategy aims to make Bitfarms less attractive to potential acquirers and dilute Riot’s ownership stake.
- Under Bitfarms’ defensive plan, if any entity acquires more than 15% of the company’s shares by a specified date range, new shares will be issued to dilute that entity’s ownership.
Riot Platforms CEO Criticizes Bitfarms’ Tactics
Riot Platforms CEO, Jason Les, has openly criticized Bitfarms’ defensive actions. Les accused Bitfarms of implementing a poison pill defense with a trigger set below the standard 20% threshold instead of engaging in private discussions with Riot.
- Les also pointed out the recent removal of company co-founder Emiliano Grodzki by Bitfarms’ shareholders as an example of the board’s entrenchment and neglect of shareholder interests.
- He called for the resignation of Chairman and interim CEO Nicolas Bonta, citing poor corporate governance under Bonta’s leadership since 2018 and emphasized the need for better shareholder representation in Bitfarms’ decision-making processes.
Bitfarms’ Future Plans and Stock Performance
Despite the ongoing acquisition battle with Riot Platforms, Bitfarms made headlines today with a 15% surge in its stock value. The rise in Bitfarms’ stock price followed an announcement indicating that its 2025 hash rate is projected to exceed 35 EH/s due to the development of a new large-scale mining site in the United States.
Conclusion
The ongoing takeover saga between Riot Platforms and Bitfarms continues to intensify, with both companies taking strategic steps to protect their interests and gain control. The future of Bitfarms remains uncertain amid the conflict with Riot Platforms, and shareholders on both sides eagerly await the next developments in this high-stakes battle.
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