Riot Platforms boosts Bitfarms stake with $2.28M share acquisition

Amaka Nwaokocha10 minutes agoRiot Platforms boosts Bitfarms stake with $2.28M share acquisitionRiot Platforms continues navigating its complex relationship with Bitfarms while expanding its operations.51 Total viewsListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onRiot Platforms Inc., the third largest Bitcoin miner on Wall Street, has significantly increased its stake in rival Bitfarms Ltd. In a regulatory filing on Aug. 13, Riot disclosed acquiring an additional 1 million Bitfarms common shares through open market purchases. 

This transaction, valued at approximately $2.28 million, raises Riot’s total holdings in Bitfarms to 85.3 million shares, up from the previous 84.3 million. With this purchase, Riot now owns 18.9% of Bitfarms, intensifying its influence over the Canadian mining firm.Riot Platforms increases Bitfarms stake

The acquisition marks the latest development in the ongoing tensions between the cryptocurrency mining companies. In May, Riot made an unsolicited $950 million offer to acquire Bitfarms, which Bitfarms promptly rejected, labeling the proposal as undervaluing the company. 

In response, Bitfarms adopted a “poison pill” defense to deter Riot’s potential hostile takeover attempts, but the Canadian regulators fought this move.

Despite withdrawing its initial acquisition offer, Riot has continued to exert pressure on Bitfarms’ leadership. In June, Riot requisitioned a special shareholder meeting to remove certain Bitfarms directors and replace them with independent candidates.

However, the boardroom battle appears to be yielding results. Earlier on Aug. 13, Bitfarms announced the immediate departure of co-founder and chair Nicolas Bonta, one of the three board members Riot targeted for replacement.

Related:Bitcoin miners record lowest daily revenue of 2024

Riot indicated that it would continue to review its investment in Bitfarms and may consider further actions, including adjusting its position or proposing additional changes to the board composition.Riot’s acquisitions and growth

In addition to its ongoing maneuvering with Bitfarms, Riot has succeeded in acquisitions elsewhere. On July 24, Riot completed the purchase of Kentucky-based Block Mining for $92.5 million. This acquisition significantly boosts Riot’s hashrate and expands its geographical presence beyond Texas into new energy markets.

The Block Mining transaction, finalized on July 23, included an $18.5 million cash payment and $74 million in Riot common stock. Additionally, a potential earn-out of up to $32.5 million is available until 2025, contingent on Block Mining securing further power purchase agreements. 

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