Riot Platforms has announced it is increasing its stake in Bitfarms to 18.9%, increasing its influence over the rival Canadian-based Bitcoin mining company. The development comes after Riot purchased an additional 1 million common shares of Bitfarms.

Riot confirmed that:

“The shares purchased were purchased through regular transactions on the Nasdaq Stock Exchange and other open market transactions at an average price of approximately $2.28 per share.”

The transaction brings Riot's total holdings to 85.3 million shares, up from 84.3 million previously, further cementing Riot's position as a significant shareholder in Bitfarms, Finance Magnates reports.

The strategic move comes amid ongoing tensions between Riot and Bitfarms, which began in April when Riot made a $950 million bid to acquire Bitfarms. Bitfarms rejected the offer, saying it was undervalued and took a “poison pill” to block hostile takeover attempts.

Despite withdrawing its initial acquisition offer, Riot has continued to pressure Bitfarms’ leadership, including calling a special shareholder meeting in June to propose replacing some directors with independent candidates. This boardroom battle has had some success, with Bitfarms announcing yesterday the departure of co-founder and chairman Nicolas Bonta, one of the executives Riot wanted to replace.

Riot’s actions are part of a broader strategy to influence Bitfarms’ board composition and strategic direction. The company has indicated that it will continue to review its investment in Bitfarms and consider further actions such as adjusting its position or proposing other changes to the board.

In addition to increasing its stake in Bitfarms, Riot is also expanding its operations elsewhere. The company recently acquired Block Mining in Kentucky for $92.5 million, increasing its mining speed and expanding its geographic footprint beyond Texas into new energy markets. Riot also reported a 45% increase in Bitcoin production in July, producing 370 BTC despite flat prices.

*A “poison pill” strategy is a defensive measure a company uses to prevent or make a hostile takeover more difficult. When a company becomes the target of an unwanted takeover, this strategy is activated to make the acquisition more costly or complicated for the acquirer.


Source: https://tapchibitcoin.io/riot-tang-co-phan-so-huu-bitfarms-sau-khi-chu-chach-nicolas-bonta-buoc-phai-tu-chuc.html