{"id":13899,"date":"2024-05-29T13:31:58","date_gmt":"2024-05-29T10:31:58","guid":{"rendered":"https:\/\/forklog.com\/en\/riot-platforms-offers-950-million-acquisition-of-bitfarms\/"},"modified":"2024-05-29T13:31:58","modified_gmt":"2024-05-29T10:31:58","slug":"riot-platforms-offers-950-million-acquisition-of-bitfarms","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/riot-platforms-offers-950-million-acquisition-of-bitfarms\/","title":{"rendered":"Riot Platforms Offers $950 Million Acquisition of Bitfarms"},"content":{"rendered":"<p>Mining firm Riot Platforms has proposed to the board of directors of rival Bitfarms an offer to purchase all publicly traded shares at a price of $2.30 each.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World\u2019s Largest Publicly Listed Bitcoin Miner.<\/p>\n<p>Read the full press release here: <a href=\"https:\/\/t.co\/SnBijrL3i7\">https:\/\/t.co\/SnBijrL3i7<\/a><\/p>\n<p>For disclaimers, please visit: <a href=\"https:\/\/t.co\/6RQFSK9MKb\">https:\/\/t.co\/6RQFSK9MKb<\/a>.<\/p>\n<p>\u2014 Riot Platforms, Inc. (@RiotPlatforms) <a href=\"https:\/\/twitter.com\/RiotPlatforms\/status\/1795433400519585980?ref_src=twsrc%5Etfw\">May 28, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The proposed purchase price offers a 20% premium over the volume-weighted average price for the month.<\/p>\n<div class=\"wp-block-text-wrappers-update-2 article_update\"><time class=\"gtb_text-wrappers_update_time\">29 May 2024 | 17:47<\/time><span class=\"gtb_text-wrappers_update_head\">Update: <\/span><\/p>\n<p>Bitfarms <a href=\"https:\/\/investor.bitfarms.com\/news-events\/press-releases\/detail\/243\/bitfarms-responds-to-unsolicited-proposal-from-riot\">confirmed<\/a> receipt of the offer from Riot. However, despite the premium, the company deemed it \u201csignificantly undervaluing the firm and its growth prospects.\u201d<\/p>\n<p>The Bitfarms board expressed a desire to continue discussions on a potential deal \u201cin a substantive manner,\u201d while adhering to traditional confidentiality measures. Riot has yet to respond.<\/p>\n<\/div>\n<p>The stated price is 24% higher than the closing value on April 19, the last business day before Riot&#8217;s initial private approach to Bitfarms&#8217; board regarding the acquisition. As of May 28, the total offer amounted to approximately $950 million.<\/p>\n<p>At that time, Riot had accumulated 9.25% of the competitor&#8217;s shares, making it the largest shareholder.<\/p>\n<p>On May 29, Riot announced it had purchased an additional 0.75% of the outstanding shares on the open market at ~$2.19, increasing its stake in Bitfarms to 10%.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Riot Platforms, Inc. Reports Beneficial Ownership of 10% in Bitfarms Ltd.<\/p>\n<p>For more information, please visit: <a href=\"https:\/\/t.co\/3mCoymvZ0L\">https:\/\/t.co\/3mCoymvZ0L<\/a>.<\/p>\n<p>\u2014 Riot Platforms, Inc. (@RiotPlatforms) <a href=\"https:\/\/twitter.com\/RiotPlatforms\/status\/1795623584171504023?ref_src=twsrc%5Etfw\">May 29, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe initial proposal was privately submitted to the Bitfarms board of directors on April 22, 2024. However, the board rejected it without engaging in substantive dialogue. Furthermore, new allegations in a lawsuit filed by a recently dismissed CEO, if accurate, raise serious questions about whether some directors are prepared to act in the interests of all shareholders,\u201d the press release stated.<\/p>\n<\/blockquote>\n<p>Riot hopes to nominate \u201cnew, highly qualified, and independent directors\u201d to the board following the shareholders&#8217; meeting scheduled for May 31.<\/p>\n<p>The company outlined several benefits of the proposed acquisition:<\/p>\n<ul class=\"wp-block-list\">\n<li>Creation of the world\u2019s largest vertically integrated bitcoin miner \u2014 the combined company\u2019s capacity will reach 1.5 GW with a hash rate of 52 EH\/s by year-end;<\/li>\n<li>Geographic diversification \u2014 the enterprise will manage a total of 15 data centers in the US, Canada, Paraguay, and Argentina with access to 2.2 GW;<\/li>\n<li>Utilization of Riot\u2019s strong financial position \u2014 the company holds $700 million in cash and 8,872 BTC, roughly 10 times the corresponding figures for Bitfarms.<\/li>\n<\/ul>\n<p>In January, CoinShares experts <a href=\"https:\/\/forklog.com\/en\/news\/coinshares-evaluates-bitcoin-miners-prospects-post-halving\">classified Bitfarms<\/a> among the few mining enterprises expected to remain profitable post-halving, even with bitcoin prices around $40,000.<\/p>\n<p>In May, Bernstein specialists noted that major American public miners like Marathon Digital, Riot, and CleanSpark increased their share in the hash rate following the <a href=\"https:\/\/forklog.com\/en\/news\/bitcoin-undergoes-fourth-halving\">block reward reduction in April<\/a>. Analysts suggested that companies will continue market expansion through organic growth, including mergers and acquisitions.<\/p>\n<p>Earlier, US miners reported a decline in bitcoin production by the end of April.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mining firm Riot Platforms has proposed to the board of directors of rival Bitfarms an offer to purchase all publicly traded shares at a price of $2.30 each. Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World\u2019s Largest Publicly Listed Bitcoin Miner. Read the full press release here: https:\/\/t.co\/SnBijrL3i7 For disclaimers, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13898,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1184,83,1137,1235,1186],"class_list":["post-13899","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitfarms","tag-business","tag-cryptocurrency-mining","tag-mergers-and-acquisitions","tag-riot-platforms"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13899","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=13899"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/13899\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/13898"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=13899"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=13899"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=13899"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}