TLDR
- Signaling a tactical move, Riot Platforms has enhanced its Bitfarms stake to 18.9%.
- Riot Platforms strategically acquired an extra one million shares of Bitfarms, priced around $2.28 each.
- Accumulating a significant share, Riot now possesses a hefty 85.3 million Bitfarms shares.
- Riot is pushing for a pivotal shareholder meeting with aims to shake up Bitfarms' board.
- These developments trace back to Riot's ambitious yet declined $950 million acquisition bid.
Deepening its stake, Riot Platforms, Inc. is now even more intertwined with Bitfarms Ltd., a leader in Canadian Bitcoin mining, as it reaches an 18.9% ownership share. This is part of a calculated approach to steer Bitfarms' future. On August 13, 2024, Riot strategically purchased an additional block of one million Bitfarms shares through regular transactions on major platforms like the Nasdaq, as well as other market options.
With shares snapped up at approximately $2.28 each, Riot's latest purchase totalled about $2.28 million, thereby bolstering its Bitfarms investment to an impressive 85,293,054 shares.
This heightened stake emerges from a backdrop of rising tensions post Riot's unsolicited acquisition offer in April, evaluated at $950 million, which Bitfarms declined, finding it undervalued.
In a defensive stance against this aggressive courting, Bitfarms invoked a 'poison pill' strategy to fend off any hostile takeover attempts.
Riot, undeterred by its initial setback, persists in its campaign for reshuffling Bitfarms' top brass. In June, they formally requested a special shareholder assembly aimed at booting certain directors and filling seats with neutral candidates.
The high-stakes power play has already led to notable shifts, including the resignation of Bitfarms’ co-founder and chairman, Nicolas Bonta, a target in Riot’s revamp agenda.
Riot is committed to reassessing its involvement in Bitfarms, factoring in market trends, the financial standing of Bitfarms, and potential avenues for strategy realignment.
Could this lead to further adjustments in their stake or even a revamped takeover bid? Riot is open to possibilities contingent on future conditions.
Following Canadian regulatory norms, Riot Platforms will submit an Early Warning Report that outlines their augmented stake and future plans for Bitfarms. This document will be available on SEDAR+, Canada's main portal for securities information.
Amid its focus on Bitfarms, Riot has been broadening its own horizons. The recent acquisition of Block Mining in Kentucky for $92.5 million pushes its limits, boosting hash capacity and extending its reach past Texas into emerging energy landscapes.
Amid stable crypto prices, Riot has notched a 45% boost in Bitcoin production, achieving 370 BTC in July.
Guiding Blockonomi, an online media authority, Oliver manages Kooc Media in the UK while championing open-source software, blockchain tech, and a universally accessible internet.
