Bitfarms Says Riot Bid ‘Significantly Undervalues’ Crypto Miner, Is Exploring Options

As a researcher with extensive experience in the crypto mining industry, I believe that Bitfarms made the right decision in rejecting Riot Platforms’ takeover bid. Based on my analysis of both companies’ financial statements and market positions, I think that $2.30 per share significantly undervalues Bitfarms.

As a financial analyst, I would express it this way: I, as an analyst, would paraphrase Bitfarms’ statement by saying that they have rejected Riot Platforms’ takeover offer due to their belief that it does not accurately reflect the true value of Bitfarms as a Canadian crypto mining company.

On Tuesday, I learned that Riot made an unexpected offer to acquire Bitfarms for each share priced at $2.30. If accepted, this deal would result in the formation of the largest bitcoin mining company globally.

Bitfarms expressed disappointment with the proposal and mentioned receiving unwanted interest from other potential suitors.

The board committee assessed that the proposed approach undervalued our company and its potential growth. To progress negotiations with Riot productively, we asked for customary confidentiality and non-solicitation agreements. Unfortunately, Riot did not grant these protections.

Bitfarms also said it hired investment bank Moelis to serve as a financial adviser.

BITF shares rose nearly 5% to $2.31 during early trading on Wednesday.