TL;DR
- Riot Platforms increases its stake in Bitfarms to 18.9% after acquiring an additional one million shares at an average price of $2.28 per share.
- The share purchase is part of an ongoing conflict that began when Riot made an unsolicited $950 million acquisition offer, which Bitfarms rejected.
- The company acquired Block Mining for $92.5 million, increasing its Bitcoin production by 45% in July.
Riot Platforms has announced an increase in its shareholding in Bitfarms Ltd., raising its ownership to 18.9%. The company purchased an additional one million shares of the Canadian Bitcoin mining firm. Riot acquired these shares at an average price of approximately $2.28 per share, bringing its total to 85.3 million shares. This move strengthens Riot’s position as one of the major shareholders in Bitfarms.
The share purchase is part of a series of tensions between the two companies that began in April when Riot made an unsolicited $950 million offer to acquire Bitfarms. Bitfarms rejected the offer, deeming it undervalued, and adopted a “poison pill” defense strategy to prevent a hostile takeover.
Despite withdrawing its acquisition proposal, Riot has continued to exert pressure on Bitfarms. For instance, Riot requested a special shareholder meeting in June to propose the removal of certain directors and their replacement with independent candidates.
Riot Achieves Bitcoin Production of 370 BTC
Recently, Bitfarms announced the departure of its co-founder and chairman, Nicolas Bonta, one of the directors Riot had sought to replace. The change was made as the board aims to influence the company’s strategic direction.
On another front, Riot has been expanding its operations. The company recently acquired Block Mining in Kentucky for $92.5 million. This acquisition has improved its hash rate and expanded its geographical presence. Riot reported a 45% increase in its Bitcoin production for July, reaching 370 BTC, despite stagnant Bitcoin prices.
Riot has indicated that it will continue to review its investment in Bitfarms and may consider adjusting its position in the company or proposing further changes to the board, depending on various factors, including the mining company’s financial situation and market conditions.
