Bitcoin mining company Riot Platforms increases its stake in Bitfarms to 14%! And fired back: There is no communication between the two parties

This site (120BtC.coM): Bitcoin mining company Riot Platforms revealed in a statement yesterday that the company has increased its holdings of 1.43 million shares in Bitfarms, accounting for about 14% of the latter. % of the equity, approaching the 15% triggering threshold of Bitfarms’ anti-merger measures. A few days ago, Riot also criticized Bitfarms for not communicating with it, showing that there are serious problems with its internal governance.

Riot continues to increase its stake in Bitfarms to 14%

As the latest move to attempt a hostile takeover of Bitfarms, Riot Platforms once again increased its stake in Bitfarms to 14%, close to the company's countermeasures Trigger value: Riot announced that it has acquired 1.43 million shares of Bitfarms at a price of approximately US$2.70 per share, for a total price of approximately US$3.87 million, bringing the total shareholding to 57.62 million shares, accounting for approximately 14% of the company's equity.

Last month, Riot tried to acquire Bitfarms with an offer of about $950 million and was rejected, and then switched to buying a large amount of the company's remaining shares.

In response, Bitfarms adopted the “Poison Pill” defensive measures a few days ago to prevent Riot from hostile potential mergers and acquisitions, aiming to increase its acquisition costs.

According to the plan, if any entity holds more than 15% of Bitfarms’ shares before September 10, the company will issue new shares to dilute the value of the acquirer’s shares; after September 10, the trigger threshold will Conditionally relaxed to 20%.

Riot slams Bitfarms: ignoring shareholder opinions

In a statement released via Businesswire on Wednesday, Riot also responded to Bitfarms’ shareholder rights plan, claiming that the move was unjustified: We have Attempts to contact the Bitfarms board of directors privately through letters and phone calls, urging them to cooperate constructively with us and add at least 2 new directors who are completely independent of Bitfarms and Riot.

And added, "As a result, Bitfarms did not communicate with us, but responded to us by implementing a poison pill plan with a trigger value well below the normal 20% threshold."

Riot Platforms execution CEO Jason Les expressed regret for this, saying that this move further shows the stubbornness of Bitfarms’ board of directors and its disregard for shareholder suggestions: We will continue to promote the resolution of Bitfarms’ serious governance issues and ensure that shareholders have a say in the future development of the company. .

At the same time, Riot also emphasized that it is legitimate behavior to obtain Bitfarms shares through normal transactions through the Nasdaq stock market and other public markets.

Currently, Riot Platforms’ market value is approximately US$3.17 billion, while Bitfarms’ market value is approximately US$1.05 billion.

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