Riot Plans Hostile Takeover of Bitfarms; Proposes $2.30 Per Share

As a researcher with experience in the bitcoin mining industry, I find this news intriguing. Riot Platforms (RIOT) seeking to acquire Bitfarms (BITF) would result in the world’s largest bitcoin miner if successful. The potential acquisition comes after Riot acquired a 9.25% stake in Bitfarms and proposed to buy all outstanding BITF shares for $2.30 apiece, representing a 24% premium.

As a crypto investor, I’ve been closely following the developments between Riot Platforms (RIOT) and Bitfarms (BITF). Excitedly, I’ve recently become a significant shareholder of Bitfarms, holding 9.25% of its outstanding stocks. Riot Platforms has expressed its intent to expand its footprint in the Bitcoin mining industry by pursuing an acquisition of my current investment, Bitfarms.

In a announcement made on Tuesday, the mining company based in Castle Rock, Colorado, proposed to buy up all the outstanding BITF shares at a price of $2.30 each. This offer represents a 24% increase over the one-month volume weighted average price of these shares as of May 24th.

As a researcher studying the cryptocurrency industry, I can share that should the proposed merger succeed, the resulting company would become the globe’s leading Bitcoin mining operation, with Riot being a key contributor to this new entity.

Last month, Riot quietly put forth its proposal. According to Riot, Bitfarms’ refusal of the offer, coupled with the former CEO Geoffrey Morphy’s lawsuit allegations against certain directors, have sparked concerns about these directors putting shareholders’ best interests first.

Bitfarms’ shares were up nearly 6% at $2.13 as of 14:00 UTC following Riot’s announcement.