đŁBig news in the Bitcoin mining world! Riot Platforms Inc., a top crypto mining company, is setting its sights on Bitfarms Ltd., another major player in the industry. đ°Riot has already snapped up a 9.25% stake in Bitfarms and is planning a public takeover offer, despite being turned down by the companyâs board.
Riot is proposing a purchase price of $2.30 per share, valuing Bitfarms at a whopping $950 million. đThis merger would create the world's largest Bitcoin miner, with a combined power capacity of 1 gigawatt (GW) and a mining capacity of 19.6 exahashes per second (EH/s). By year-end, these figures are expected to rocket to 1.5 GW and 52 EH/s.
đThe new entity would operate 15 facilities across the US, Canada, Paraguay, and Argentina. Riot's strong financial standing, with over $700 million in cash, minimal debt, and 8,872 Bitcoin, is a key factor in the proposed acquisition.
The Bitcoin mining industry is undergoing rapid consolidation following the halving, an event that halves the rewards for mining Bitcoin. đWhile larger miners like Riot have thrived post-halving with substantial cash reserves, smaller miners are struggling due to limited negotiating power and capital access.
Riot operates North Americaâs largest Bitcoin mining facility in Texas, with a 700 MW capacity and plans for a new 1 GW site. Bitfarms, on the other hand, has been expanding its operations globally, particularly in South America, where electricity costs are lower. đStay tuned for more updates on this exciting development in the Bitcoin mining industry! đđđ