As an analyst with extensive experience in the crypto and tech industries, I believe that Riot Platforms’ ongoing takeover attempt of Bitfarms is a significant development worth paying close attention to. This latest acquisition of 1,432,063 shares represents a strategic move by Riot to increase its stake in Bitfarms, bringing its total holdings to approximately 57.62 million shares, or about 14% of the company.
On June 10, I discovered that Riot Platforms acquired an extra 1,432,063 shares in Bitfarms for approximately $2.7 per share. This investment amounts to roughly $3.87 million.
With this recent acquisition, Riot now owns roughly 57.62 million shares of Bitfarms, representing a 14% stake in the company.
Riot’s Ongoing Takeover
As a crypto investor following the developments in the industry, I’m excited to share that Riot’s aggressive move towards taking over Bitfarms is progressing. Last month, Riot made a bold bid to acquire Bitfarms for approximately $950 million. By May 28, Riot had become Bitfarms’ largest shareholder, securing a significant 9.25% stake. To further strengthen its position, Riot continued its investment on June 5 by purchasing an additional 1.5 million shares.
As a crypto investor in Bitfarms, I’ve been keeping a close eye on the company’s response to Riot’s aggressive acquisition strategy. In an attempt to protect our investment and maintain control, Bitfarms has implemented defensive measures. One of these measures is the adoption of a “poison pill” strategy. This tactic was put in place earlier this week with the goal of making Bitfarms less desirable to potential acquirers, thereby deterring takeover attempts. Additionally, it dilutes Riot’s ownership stake, further discouraging them from pursuing an acquisition.
As a researcher studying Bitfarms’ strategies, I can explain it this way: If any entity manages to purchase over 15% of Bitfarms’ outstanding shares between June 20 and September 10, the company reserves the right to issue new shares, thereby diluting that entity’s ownership percentage.
Currently, Bitfarms’ stock has experienced a significant surge of over 15% today. This upward trend was sparked by news that the company’s projected hash rate for 2025 will surpass 35 Exahashes per second (EH/s). The cause behind this anticipated increase is the establishment of Bitfarms’ first major mining facility in the United States.
Riot Platforms CEO Slams Bitfarms’ Defensive Tactics
As a crypto investor, I’ve been following the ongoing feud between Riot Platforms and Bitfarms closely. I was disappointed to see Bitfarms respond to our recent overtures with defensive measures instead of open dialogue. In a statement released on Wednesday, Riot Platforms CEO Jason Les expressed his disappointment by stating, “Rather than engaging in private discussions and in good faith, Bitfarms chose to implement an off-market poison pill with a trigger set well below the standard 20% threshold.”
Les levied additional criticisms against the Bitfarms Board, charging them with creating barriers for change and disregarding shareholder concerns. He pointed to the recent ousting of company co-founder Emiliano Grodzki by shareholders just over a fortnight ago as evidence.
“Les pointed out that this move by the Bitfarms Board merely underscores their deep-rooted disregard for shareholder viewpoints. He advocated for the departure of Chairman and interim CEO Nicolas Bonta, attributing subpar corporate governance to his leadership since 2018.”
Moving forward, we are committed to taking action to tackle the significant corporate governance concerns at Bitfarms and give shareholders a voice in determining the company’s future direction. In line with this initiative, Riot Platforms intends to call for a special meeting of Bitfarms shareholders to propose the appointment of several independent directors to join the board.
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2024-06-14 19:27