Riot plans hostile takeover of Bitfarm, proposes $2.30 per share
Riot privately offered its proposal last month, and Bitfarms rejected it.
Riot Platforms (RIOT) has sought to acquire fellow bitcoin miner Bitfarms (BITF), having acquired 9.25% of the company to become its largest shareholder.
The Castle Rock, Colorado-based miner proposed selling all outstanding BITF shares for $2.30 each, representing a 24% premium to its one-month volume-weighted average price as of May 24. , Riot announced on Tuesday.
If the proposal comes to fruition, the combined entity would be the largest bitcoin miner in the world, Riot added.
Riot privately offered its proposal last month. Riot cited the rejection of Bitfarms' bid along with allegations from a lawsuit by recently fired CEO Geoffrey Morphy as "raising serious questions about whether certain directors are committed to acting in the best interests of all shareholders."
Bitfarms shares rise 7.18% to $2.17, following Riot's announcement.
