{"id":14340,"date":"2024-06-14T12:32:41","date_gmt":"2024-06-14T09:32:41","guid":{"rendered":"https:\/\/forklog.com\/en\/riot-platforms-expands-stake-in-bitfarms-to-14\/"},"modified":"2024-06-14T12:32:41","modified_gmt":"2024-06-14T09:32:41","slug":"riot-platforms-expands-stake-in-bitfarms-to-14","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/riot-platforms-expands-stake-in-bitfarms-to-14\/","title":{"rendered":"Riot Platforms Expands Stake in Bitfarms to 14%"},"content":{"rendered":"

The mining firm Riot Platforms has increased its holdings in rival Bitfarms to 57.62 million shares (14%)<\/a>.<\/p>\n

Over the course of a week, the company allocated $3.87 million to acquire 1.43 million securities. These actions reflect Riot’s ambitions to execute a hostile takeover of Bitfarms.<\/p>\n

On May 29, it was revealed that the company had made an offer<\/a> to acquire Bitfarms for $950 million, which included a 20% premium over the target firm’s average stock prices for the month.<\/p>\n

At that time, Bitfarms’ board expressed a desire to continue discussions on a potential deal in a substantive manner, while adhering to traditional confidentiality measures. A special committee stated that the offer “significantly undervalues the company and its growth prospects.”<\/p>\n

At this stage, Riot Platforms declined to participate in the process of reviewing strategic alternatives, opting instead to continue purchasing shares on the secondary market.<\/p>\n

On June 10, Bitfarms’ board of directors adopted a shareholder rights plan through a “poison pill<\/a>” strategy. This practice aims to make the company less attractive and\/or dilute the buyer’s stake in the target firm.<\/p>\n

According to the plan, if any organization accumulates more than a 15% stake in Bitfarms after June 20 and before September 10, the company will issue new shares, diluting the stake. After September 10, the threshold will be reduced to 20% if the takeover attempt meets certain criteria.<\/p>\n

Riot intends to call a special meeting of Bitfarms shareholders, where it plans to nominate several independent members to the board of directors.<\/p>\n

On June 13, the company’s management reiterated<\/a> that Riot Platforms’ takeover offer “significantly undervalues Bitfarms and does not serve the interests of shareholders.”<\/p>\n

On the same day, its shares rose by 15% following the announcement of plans to increase its hash rate to 35 EH\/s and beyond by 2025, through the development of a site in Pennsylvania, USA.<\/p>\n

\n

“This facility offers access to competitive power supplies and provides an opportunity to optimize and effectively hedge energy costs,”<\/em> the statement said.<\/p>\n<\/blockquote>\n

\"Riot
Daily chart of Bitfarms shares on Nasdaq. Data: Finviz<\/a>.<\/figcaption><\/figure>\n

As a result, Bitfarms’ capacity is set to increase to 648 MW by 2025. This is 170% more than the current level and 47% higher than the plan for the end of 2024.<\/p>\n

In January, CoinShares experts identified Bitfarms<\/a> as one of the few mining enterprises that will remain profitable after the halving, even with bitcoin prices around $40,000.<\/p>\n

In June, presidential candidate Donald Trump held a meeting with representatives of the cryptocurrency mining industry and promised to protect this activity in the United States and worldwide.<\/p>\n","protected":false},"excerpt":{"rendered":"

The mining firm Riot Platforms has increased its holdings in rival Bitfarms to 57.62 million shares (14%). Over the course of a week, the company allocated $3.87 million to acquire 1.43 million securities. These actions reflect Riot’s ambitions to execute a hostile takeover of Bitfarms. On May 29, it was revealed that the company had […]<\/p>\n","protected":false},"author":1,"featured_media":14339,"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":[1184,1137,1186],"class_list":["post-14340","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitfarms","tag-cryptocurrency-mining","tag-riot-platforms"],"aioseo_notices":[],"amp_enabled":true,"views":"9","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14340","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=14340"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14340\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/14339"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=14340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=14340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=14340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}