Riot miner’s share of rival Bitfarms has risen to 24%

Bitfarms had previously rejected Riot’s offer to sell the company outright

06.06.2024 - 11:52

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2 min

What’s new? US miner Riot Platforms bought a 12% stake in Canadian competitor Bitfarms in addition to its existing 11,63% stake. So, on June 5, Riot bought about 1,5 million BITF securities at $2,45 apiece for a total of nearly $3,7 million.

Material by Reuters

What else is known? 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.

Last week, Riot offered to fully buy out Bitfarms for $950 million but was refused.

Also on June 5, investment firm Kerrisdale Capital opened a short position in Riot (RIOT) shares, causing their value to collapse by 9%.

Bitfarms reported a 42% drop in mining revenue in May. The company attributed this to a halving that took place on April 20 and halved the reward for mining blocks: it is now 3,125 BTC. For the same reason, other major players in the industry also reduced their mining volumes.

Birfarms also explained the deterioration in financial results by weather conditions in Rio Cuarto, Argentina: the cold snap forced the company to stop working on its farm for several days.

Miner Core Scientific will start leasing capacity to AI company CoreWave

The 12-year agreement will generate more than $3,5 billion for the miner

BITF are trading at $2,51 on the Nasdaq, having added 4,15% overnight. They are up 34,22% for the month but have lost 24,17% since the beginning of the year.

RIOT is also traded on the Nasdaq with a price per security of $9,65 (-0,21% overnight). Monthly decline is 9,22%, and since the beginning of the year, the stock has lost 43,47%.

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