Riot Platforms Boosts Stake in Bitfarms with $2.2 Million Acquisition

Riot Platforms Increases Stake in Bitfarms: Strategic Moves in Bitcoin Mining

Riot Platforms has recently acquired $2.2 million in Bitfarms shares, purchasing 1 million common shares of the Canadian Bitcoin mining company. This acquisition raises Riot’s stake to approximately 18.90% of Bitfarms’ shares.

According to an August 13 press release, the shares were bought at a weighted average price of $2.28 each, totaling about $2.3 million. This move follows a $950 million takeover offer earlier this year that did not gain approval from Bitfarms’ board.

With this recent purchase, Riot now holds nearly 19% of Bitfarms’ total shares. This news prompted a 3.26% increase in Bitfarms’ share price.

Previously, Riot had called for a special meeting to propose changes to Bitfarms’ board, indicating their ongoing interest in influencing the company’s strategic direction. Bitfarms has also seen leadership changes, including the appointment of Ben Gagnon as CEO and Brian Howlett as independent chairman of the board. Co-founder Nicolas Bonta stepped down from the board amid these developments.

Bitfarms’ Response to Takeover Bids

In response to these acquisition efforts, Bitfarms is addressing regulatory challenges and recent legal rulings affecting its shareholder rights plans. The company has introduced a “new rights plan” aimed at ensuring fair treatment for all shareholders during unsolicited takeover attempts.

This plan includes measures to protect against “creeping bids,” where an acquirer gradually accumulates 20% or more of the company’s shares through exempt purchases. Effective for six months, the plan allows existing shareholders to buy additional shares at a discount, thereby diluting the stake of any potential acquirer and safeguarding shareholder interests.

“The new rights plan is designed to ensure fair treatment for all shareholders in the event of an unsolicited takeover attempt,” said Bitfarms in a recent statement.

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