Riot increases Bitfarms ownership stake following board member removal
Riot Platforms has announced an increase in its ownership stake in Bitfarms Ltd. to 18.9%, intensifying its influence over the Canadian Bitcoin mining firm. This development follows Riot’s acquisition of an additional 1 million common shares of Bitfarms.
Riot confirmed,
“The Purchased Shares were acquired through normal course purchases on the Nasdaq Stock Market and other open market trades for a weighted average price of approximately US$2.28 per Purchased Share”
The transaction raised Riot’s total holdings to 85.3 million shares, up from 84.3 million previously, further consolidating its position as a significant shareholder in Bitfarms, as reported by Finance Magnates.
The strategic move comes amid ongoing tensions between Riot and Bitfarms. These tensions began in April when Riot made an unsolicited $950 million offer to acquire Bitfarms. Bitfarms rejected the offer, deeming it undervalued, and adopted a “poison pill” defense to thwart hostile takeover attempts.
Despite withdrawing its initial acquisition proposal, Riot has continued to exert pressure on Bitfarms’ leadership, including requisitioning a special shareholder meeting in June to propose the removal of certain directors and their replacement with independent candidates. This boardroom battle has seen some success, with Bitfarms yesterday announcing the departure of its co-founder and chair, Nicolas Bonta, one of the directors Riot sought to replace.
Riot’s actions are part of a broader strategy to influence Bitfarms’ board composition and strategic direction. The company has indicated it will continue to review its investment in Bitfarms, considering further actions such as adjusting its position or proposing additional board changes.
In addition to its increased stake in Bitfarms, Riot has been expanding its operations elsewhere. The company recently acquired Block Mining in Kentucky for $92.5 million, enhancing its hash rate and geographical presence beyond Texas into new energy markets. Riot also reported a 45% increase in Bitcoin production for July, producing 370 BTC despite stagnating prices.
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