Riot Platforms Strengthens Grip on Bitfarms With Purchase of 1 Million Shares

Riot Platforms has made a remarkable move in its ongoing efforts to take control of Canadian Bitcoin mining firm Bitfarms.

Riot Platforms has taken a bold step in its ongoing efforts to gain control of Canadian Bitcoin mining firm Bitfarms. On August 13, Riot announced the purchase of 1 million common shares of Bitfarms, increasing its ownership in the company to approximately 18.90%.

The shares were acquired at a weighted average price of $2.28 each, totaling about $2.3 million. This move comes on the heels of a $950 million offer made by Riot earlier this year, which was withdrawn after failing to gain approval from Bitfarms’ board.

With this latest acquisition, Riot Platforms has significantly strengthened its influence over Bitfarms, now holding nearly 19% of the total shares in the company. The increase in ownership is a clear indication of Riot’s determination to shape the strategic direction of Bitfarms, a company that has been undergoing significant leadership changes in recent months.

According to reports, the news of Riot Platforms’ share purchase had an immediate impact on the market. Following the announcement, Bitfarms shares soared by 3.26%, according to data from Google Finance. This rise in share value highlights the market’s recognition of Riot’s growing influence and the potential changes that could be on the horizon for Bitfarms.

Riot Platforms has not been subtle in its ambitions. The company has previously called for a special meeting to propose changes to Bitfarms’ board, signaling its desire to play a more active role in the company’s decision-making process. Riot’s ongoing interest in Bitfarms comes at a time when the Canadian Bitcoin miner is navigating through turbulent waters, both internally and externally.

Riot Platforms Capitalizes on Bitfarms’ Internal Changes

The leadership at Bitfarms has seen several shifts recently, with Ben Gagnon stepping into the role of CEO and Brian Howlett taking on the position of independent chairman of the board. These changes have occurred amid the backdrop of a takeover battle, with Nicolas Bonta, co-founder of Bitfarms, stepping down from the board. Bonta has been at the center of the struggle against Riot Platforms, making his departure a significant moment in the ongoing saga.

Bitfarms is not standing idly by as Riot Platforms continues its pursuit. In response to the takeover bid, Bitfarms has introduced a new rights plan designed to protect shareholder interests. This plan is a strategic move aimed at countering any potential takeover attempts by Riot Platforms or other entities.

The new rights plan includes measures to protect against “creeping bids,” where an acquirer gradually accumulates 20% or more of the company’s shares through exempt purchases. The plan, which is effective for six months, allows existing shareholders to buy additional shares at a discount. This move is intended to dilute the stake of any potential acquirer, thereby safeguarding the interests of current shareholders.

Riot Platforms Keeps Pushing Forward

Despite Bitfarms’ efforts to protect itself, Riot Platforms remains undeterred in its pursuit. The acquisition of an additional 1 million shares is a clear message that Riot Platforms is committed to its strategy and is willing to take bold steps to achieve its goals. The ongoing battle between these two companies is one of the most closely watched developments in the cryptocurrency mining industry, with significant implications for both companies and their shareholders.

As the situation continues to unfold, it is clear that Riot Platforms is not backing down. The company’s latest move has further solidified its position within Bitfarms and has set the stage for what could be a pivotal moment in the industry. Riot’s actions demonstrate its belief in the potential of Bitfarms and its willingness to invest heavily in that potential.

The coming weeks and months will be crucial as Riot Platforms and Bitfarms continue to navigate this complex and high-stakes situation. Both companies are likely to make additional moves as they vie for control and influence in the rapidly evolving world of Bitcoin mining.

As always, DeyThere will keep you informed with the most up-to-date and accurate news as the situation unfolds.

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