Miner Riot raises its stake in rival Bitfarms to 14%

Bitfarms intends to resist the takeover by issuing additional shares

14.06.2024 - 10:41

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What’s new? US miner Riot Platforms has increased its stake in rival Canadian company Bitfarms from 12% to 14%. Previously, Riot had also offered to fully buy out Bitfarms for $950 million but was turned down. Bitfarms, in turn, intends to resist the takeover by issuing additional shares, which will reduce Riot’s stake.

Press release

What else is known? On June 5, Riot bought about 1,5 million BITF securities at $2,45 apiece for a total of nearly $3,7 million, increasing its stake in the company to 12%. On June 13, Riot bought another 1,4 million shares of Bitfarms at $2,7 apiece for a total of $3,87 million.

Riot said it intends to call for a special shareholder meeting to include independent members on Bitfarms’ board of directors, citing concerns about corporate governance.

In response, Bitfarms announced its anti-takeover plan: if Riot increases its stake to 15% between June 20 and September 10, issuance of additional BITF shares will be made to reduce the stake. From September 10, the limit will be lowered, and additional shares will be issued if Riot’s stake exceeds 20%.

Riot CEO Jason Les criticized Bitfarms’ actions, accusing the company of refusing to cooperate in good faith.

Birfarms mining revenue fell by 42% in one month

The company attributed this to halving and cold weather in one of the regions where it maintains a farm

At the time of writing the news, BITF is trading at $2,81 on the Nasdaq, having added 15,64% overnight.

The day before, the shares of most miners, including Riot, showed significant daily growth. This happened after Donald Trump met with representatives of the industry and promised to support it if re-elected as president.

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