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>>Riot Platforms has acquired a 9.25% stake in Bitfarms following the rejection of their takeover offer.

Riot Platforms has acquired a 9.25% stake in Bitfarms following the rejection of their takeover offer.

crypthub

1/24/2025, 11:47:02 AM

Riot Platforms Acquires Stake in Bitfarms Despite Rejection of Takeover Offer

Riot Platforms has secured a 9.25% stake in Bitfarms, following the latter's board's rejection of Riot's $950 million acquisition proposal. The press release from May 28th revealed this development, with Riot proceeding to become the largest shareholder despite the initial decline.

Riot's Offer Details and Shareholder Benefits

Riot proposed a buyout price of $2.30 per share, representing significant premiums over Bitfarms' recent share prices. The offer included a combination of cash and Riot common stock, potentially allowing Bitfarms shareholders to own up to 17% of the merged company. This proposal was structured to provide substantial benefits to Bitfarms shareholders.

Rejection and Concerns Over Board Conduct

The release emphasized that Riot's offer was rejected without meaningful discussion, raising concerns about the conduct of certain Bitfarms directors. These concerns were exacerbated by a recent lawsuit filed against the company by its terminated CEO, Nicolas Bonta. Riot responded by expressing the need to directly communicate their offer to Bitfarms' shareholders.

Riot's Next Steps and Potential Merger Benefits

Following Bitfarms' Annual General and Special Meeting on May 31st, Riot plans to requisition a special meeting of Bitfarms shareholders. The purpose is to introduce new independent directors to the Bitfarms Board. A merger between the two companies would create the world's leading publicly listed Bitcoin miner, with geographically diverse operations poised for long-term growth, according to Riot Executive Chairman Benjamin Yi.

Riot CEO Expresses Concern Over Bitfarms Leadership

Riot CEO Jason Les voiced concerns regarding the termination of Bitfarms CEO Nicolas Bonta, suggesting that Bonta and company founder Emiliano Grodzki may not be acting in the best interests of all Bitfarms shareholders. This adds another layer of complexity to the ongoing situation between Riot and Bitfarms.