Riot Platforms has significantly boosted its stake in Bitfarms Ltd., now holding an 18.9% ownership in the Canadian Bitcoin mining company. This increased influence follows Riot’s recent purchase of an additional 1 million common shares in Bitfarms.
Details of the Transaction
Riot confirmed that these shares were acquired through routine transactions on the Nasdaq Stock Market and other open markets. The average purchase price for these shares was approximately $2.28 each.
As a result of this transaction, Riot’s total shareholding in Bitfarms has risen to 85.3 million shares from 84.3 million, further solidifying its status as a key shareholder, according to Finance Magnates.
Strategic Tensions Between Riot and Bitfarms
This move comes against the backdrop of ongoing friction between Riot and Bitfarms. In April, Riot made an unsolicited $950 million offer to acquire Bitfarms. However, Bitfarms rejected the bid, labeling it as undervalued and employing a “poison pill” strategy to prevent any hostile takeover.
Although Riot withdrew its initial acquisition offer, the company has maintained pressure on Bitfarms’ leadership. In June, Riot requested a special shareholder meeting to propose the removal of certain directors, advocating for their replacement with independent candidates. This effort bore fruit recently when Bitfarms announced the departure of co-founder and chair, Nicolas Bonta, one of the directors Riot aimed to replace.
Broader Strategy and Future Plans
Riot’s actions reflect a broader strategy to influence Bitfarms’ board composition and overall strategic direction. The company has signaled its intent to continue reviewing its investment in Bitfarms, which may include adjusting its position or proposing further board changes.
Riot’s Expansion Beyond Bitfarms
Beyond its dealings with Bitfarms, Riot is also expanding its operations elsewhere. The company recently purchased Block Mining in Kentucky for $92.5 million, thereby enhancing its hash rate and extending its geographical reach beyond Texas into new energy markets. Additionally, Riot reported a 45% increase in Bitcoin production for July, producing 370 BTC despite stagnant prices.
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