Riot Platforms Increases Stake in Bitfarms, Strengthens Position in Crypto Mining

Riot Platforms, a prominent Bitcoin (BTC) mining company, has significantly increased its stake in Bitfarms. The acquisition of over 10.23 million shares in July has raised Riot’s ownership to 71.56 million shares, valued at $159.1 million. This move brings Riot’s total stake in Bitfarms to 15.9%. The shares were bought at prices ranging from $2.48 to $2.84 per share, as per a recent filing with the U.S. Securities and Exchange Commission (SEC) dated July 31, 2024, according to TheMinerMag. 

This acquisition follows a $950 million acquisition bid for Bitfarms in May, which was rejected by the Bitfarms board. Bitfarms has implemented a shareholder rights plan, known as a “poison pill,” to prevent hostile takeover attempts by Riot.

Bitfarms argued that Riot’s offer undervalued its growth potential. Riot previously held 11.62% of Bitfarms’ shares at the time of the bid. The board unanimously supported the poison pill plan to protect shareholders’ interests. The ongoing struggle between Riot and Bitfarms highlights the complex dynamics in the crypto mining industry.