Acquisition of Stake in Bitfarms Ltd.
Riot Platforms, Inc. has recently acquired a 14% stake in Bitfarms Ltd. as part of its strategic move to influence the corporate governance of the company. The acquisition details and strategic intentions behind this acquisition are outlined below.
Acquisition Details
On June 13, 2024, Riot Platforms purchased 1,432,063 common shares of Bitfarms Ltd. on the Nasdaq Stock Market and other open market trades. This acquisition represents approximately 0.35% of Bitfarms’ total issued and outstanding common shares. The average price per share was around $2.70, amounting to a total investment of $3,870,293.46.
- Riot’s previous ownership: 56,194,973 common shares (13.65% stake)
- Newly acquired shares: 1,432,063 common shares
- Riot’s current ownership: 57,627,036 common shares (14% stake)
Strategic Intentions
Riot Platforms has disclosed its intention to convene a special meeting of Bitfarms’ shareholders with the objective of nominating independent directors to the company’s board. The motivation behind this move is to address concerns related to Bitfarms’ corporate governance practices and influence the company’s strategic direction positively.
- Riot’s goal: Improve Bitfarms’ governance standards
- Reviewing investment: Riot continually assesses its investment in Bitfarms and may adjust its position based on market conditions and financial status
- Possible actions: Increase/decrease stake, hedge exposure, propose strategic initiatives
Forward-Looking Statements
Riot Platforms has provided forward-looking statements in its press release, cautioning investors about potential risks and uncertainties. While the statements reflect Riot’s current expectations and assumptions, actual outcomes may significantly differ. Investors are advised to carefully consider these factors before making any investment decisions.
Riot’s Vision
Riot Platforms aims to establish itself as a leading Bitcoin-driven infrastructure platform. The company pursues a vertically integrated strategy, encompassing Bitcoin mining operations in Texas and electrical switchgear engineering in Colorado. These initiatives underline Riot’s commitment to innovation and growth in the cryptocurrency space.
For comprehensive information, interested parties can access the early warning report on Bitfarms’ profile on the SEDAR+ website.
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