Riot Platforms Advances Hostile Takeover of Bitfarms

Riot Platforms Expands Stake in Bitfarms

Riot Platforms, a leader in Bitcoin mining, has made a strategic move by acquiring 1,432,063 additional shares of Bitfarms at approximately $2.70 per share. This acquisition, totaling about $3.87 million, increases Riot's ownership to 57.62 million shares, representing roughly 14% of Bitfarms.

Hostile Takeover Strategy

Riot's recent purchase is part of its ongoing strategy for a hostile takeover of Bitfarms. This follows its previous offer to acquire Bitfarms for approximately $950 million. Despite these efforts, Bitfarms has resisted the takeover by adopting defensive measures, including a "poison pill" strategy.

Bitfarms’ Defensive Measures

In response to Riot's aggressive approach, Bitfarms has implemented a poison pill strategy. This tactic is designed to dilute the ownership of any entity acquiring more than 15% of its shares between June 20 and September 10. After this period, the threshold adjusts to 20%, contingent on specific takeover conditions.

Riot's Next Moves

Riot Platforms plans to call a special meeting of Bitfarms shareholders. The agenda includes proposing several independent directors to join Bitfarms' board, aiming to influence the company's strategic direction.

Bitfarms' Expansion Plans

Amid these takeover attempts, Bitfarms announced its expansion into the United States with a new site in Sharon, Pennsylvania. The development plans include establishing up to 120 megawatts (MW) of power capacity, signaling Bitfarms' commitment to growth and resilience against takeover pressures.

This ongoing corporate battle reflects the dynamic nature of the cryptocurrency mining sector, highlighting the strategic maneuvers companies undertake to maintain or shift control.