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Finance

Riot Plans Hostile Takeover of Bitfarms; Proposes $2.30 Per Share

Riot privately offered its proposal last month, with Bitfarms rejecting it.

By Jamie Crawley
AccessTimeIconMay 28, 2024 at 2:26 p.m. UTC
Updated May 29, 2024 at 4:51 p.m. UTC
A photo of four mining rigs
Mining rigs in Plattsburgh, NY. (Fran Velasquez/CoinDesk)
  • If the proposal comes to fruition, the combined entity would be the world's largest bitcoin miner, Riot said.
  • Bitfarms' shares were up nearly 6% at $2.13 as of 14:00 UTC following Riot's announcement.
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    • Riot Platforms (RIOT) has sought to acquire fellow bitcoin miner Bitfarms (BITF), having acquired a 9.25% in the company to become its large shareholder.

    The Castle Rock, Colorado-based miner proposed to by all the outstanding BITF shares for $2.30 apiece, representing a 24% premium to their 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 world's largest bitcoin miner, Riot added.

    Riot privately offered its proposal last month. Riot cited Bitfarms' rejection of the bid along with allegations of 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 were up nearly 6% at $2.13 as of 14:00 UTC following Riot's announcement.

    Read More: Bitcoin Miner Stronghold Looking at Options, Including Sale of Company

    Edited by Oliver Knight.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley
    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.

    Follow @JamieCrawleyCD on Twitter