TLDR:
- Bitfarms counters Riot Platforms’ assertions about the return of the special meeting and their acquisition attempt.
- Bitfarms asserts that Riot is attempting an opportunistic buy at a bargain rate.
- Bitfarms defends its latest changes to the board and the planned Stronghold acquisition.
- Riot Platforms is a major stakeholder in Bitfarms, owning almost 20% of shares.
- A special meeting of shareholders has been scheduled for October 29 to discuss the matter.
Bitfarms, a prominent player in the Bitcoin mining industry, has issued a reply to recent maneuvers and allegations by Riot Platforms. , its largest shareholder.
A heated disagreement between Bitfarms and Riot Platforms has intensified, with the former accusing the latter of trying to secure the company at an undervalued price and spreading misleading statements about governance.
Bitfarms clarified that the upcoming special shareholder meeting on October 29 doesn't focus on governance issues as Riot has suggested. The company insists that Riot's proposal is more about grabbing a good deal to benefit its own shareholders rather than those of Bitfarms.
According to Bitfarms, Riot has not been cooperative, refusing typical non-disclosure agreements and failing to present a fair proposal.
Bitfarms strongly justifies its recent board realignment and leadership alterations as independent of Riot, aiming to enhance value for all investors.
On the topic of the Stronghold acquisition, Bitfarms explained its alignment with strategic goals to diversify and increase their energy capacity in the U.S.
With this deal, Bitfarms plans to boost its energy capacity past 950 MW, almost half of which will be based in the U.S. by 2025.
Trouble has been brewing since May 2024, with Riot Platforms stepping up the pressure for Bitfarms to accept a $950 million acquisition.
In a move to counter the hostile bid, Bitfarms first established a shareholder rights plan, commonly known as a 'poison pill' approach, but this plan was dismissed by Canada's Ontario Capital Markets Tribunal.
After the plan's dismissal, Riot Platforms upped their stake to nearly 20% and also proposed three potential board members for Bitfarms, an offer that the latter regards cautiously.
Bitfarms' board assured that they will evaluate Riot’s new proposal, stressing that shareholders currently need not take any action.
The firm sticks to its strategic priorities and trusts in the skills and expertise of its leadership team to guide the company effectively.
Since its inception in 2017, Bitfarms has been a backbone in Bitcoin mining, running 12 data centers spread across Canada, the U.S., Paraguay, and Argentina, leveraging eco-friendly hydro-electric power sources and long-term contracts.
