Riot increases stake in Bitfarms with $2.2m share purchase
Riot continues to push its acquisition efforts, having recently acquired $2.2 million in Bitfarms shares.
Riot Platforms has announced the purchase of 1 million common shares of its rival Bitfarms, raising its stake in the Canadian Bitcoin mining firm to approximately 18.90%. In an Aug. 13 press release, Riot said the shares were acquired at a weighted average price of $2.28 each, totaling about $2.3 million.
The acquisition comes as Riot continues its push to take over Bitfarms, following a $950 million offer earlier this year that was withdrawn after failing to gain traction with Bitfarms’ board. Riot’s recent share purchase increases its influence, with the firm now holding nearly 19% of Bitfarms’ total shares. Following the news, Bitfarms shares soared 3.26%, per data from Google Finance.
Riot has previously requisitioned a special meeting to propose changes to Bitfarms’ board and has expressed ongoing interest in shaping the company’s strategic direction. Amid these developments, Bitfarms has also undergone leadership changes, including the appointment of Ben Gagnon as CEO and Brian Howlett as independent chairman of the board.
Nicolas Bonta, who co-founded Bitfarms and has been at the center of a takeover battle against Riot, recently also stepped down from the board.
Bitfarms seeks new ways to counteract takeover bids
Meanwhile, Bitfarms is trying to respond to regulatory challenges and recent legal rulings affecting its shareholder rights plans amid the takeover bid. To address these issues, Bitfarms has introduced a “new rights plan” designed to ensure fair treatment for all shareholders in the event of an unsolicited takeover attempt.
The new plan includes measures to protect against “creeping bids,” where an acquirer gradually accumulates 20% or more of the company’s shares through exempt purchases. Effective for six months, the plan allows existing shareholders to buy additional shares at a discount, which will dilute the stake of any potential acquirer and safeguard shareholder interests.
