Riot Platforms Ups Its Game: Acquires Additional $2.28M in Bitfarms Shares
Riot Platforms Inc., one of the leading Bitcoin miners on Wall Street, is once again making headlines with its strategic maneuvers in the crypto mining sector. The company has recently increased its stake in rival Bitfarms Ltd. by purchasing an additional 1 million shares through open market transactions. This latest acquisition, valued at approximately $2.28 million, brings Riot’s total holdings in Bitfarms to 85.3 million shares, up from the previous 84.3 million. With this purchase, Riot now owns 18.9% of Bitfarms, amplifying its influence over the Canadian mining firm.
A Complex Relationship: Riot and Bitfarms
The acquisition adds another layer to the already intricate relationship between Riot Platforms and Bitfarms. Back in May, Riot made an unsolicited $950 million offer to acquire Bitfarms, which was swiftly rejected by the Canadian company. Bitfarms deemed the offer undervalued and responded by implementing a “poison pill” defense strategy to block Riot’s potential hostile takeover attempts. This defensive move, however, faced opposition from Canadian regulators.
Despite withdrawing its initial acquisition proposal, Riot has continued to apply pressure on Bitfarms’ leadership. In June, Riot requisitioned a special shareholder meeting aimed at removing certain Bitfarms directors and replacing them with independent candidates. This ongoing boardroom conflict seems to be making waves, as evidenced by Bitfarms’ recent announcement of the immediate departure of co-founder and chair Nicolas Bonta. Bonta was one of the three board members targeted by Riot for removal.
Riot’s Strategic Moves and Growth
Beyond its maneuvering with Bitfarms, Riot Platforms is also making significant strides elsewhere. On July 24, Riot completed the acquisition of Block Mining, a Kentucky-based company, for $92.5 million. This deal not only boosts Riot’s hashrate but also expands its geographical footprint beyond Texas into new energy markets.
The Block Mining acquisition involved an $18.5 million cash payment and $74 million in Riot common stock. Additionally, the agreement includes a potential earn-out of up to $32.5 million, contingent upon Block Mining securing further power purchase agreements by 2025.
What’s Next for Riot and Bitfarms?
As Riot Platforms continues to expand its stake in Bitfarms and make strategic acquisitions, the dynamics of the crypto mining sector are set to evolve further. The ongoing developments between Riot and Bitfarms will be closely watched by industry observers, especially in light of the recent boardroom changes and strategic maneuvers.
Stay tuned as Riot Platforms and Bitfarms navigate their complex relationship and as Riot continues to position itself as a dominant force in the Bitcoin mining landscape.
