Riot Platforms has expanded its acquisition of Bitfarms by purchasing over 10 million additional shares this month. According to a filing with the US Securities and Exchange Commission on July 31, Riot, a Bitcoin (BTC) mining company, now holds 71.56 million Bitfarms shares, valued at $159.1 million. This acquisition increases Riot’s stake in Bitfarms to 15.9%. Throughout July, Riot bought Bitfarms shares at prices ranging from $2.48 to $2.84 per share.

Riot has an earnings call scheduled after trading hours on July 31, with its stock currently trading at $10.61 per share.

The Battle Between Riot and Bitfarms

In late May, Riot announced a $950 million acquisition bid for Bitfarms, claiming that Bitfarms’ founders were not acting in the best interests of all shareholders. However, the Bitfarms board rejected the proposal without substantive engagement, stating that Riot’s offer “significantly undervalues” its growth prospects.

In response, Bitfarms implemented a shareholder rights plan, often called a “poison pill,” to protect its strategic review process from hostile takeover attempts by Riot Platforms. At the time of the acquisition bid, Riot owned 11.62% of Bitfarms’ shares. The Bitfarms board unanimously supported the poison pill plan to safeguard their shareholders’ interests.

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