Bitfarms gains 13% after Riot $950 million buyout offer 📃

6:36 PM 13 June 2024

Bitfarms gains over 13.00% despite negative sentiment in the broader cryptocurrency market and declines in most cryptocurrency-related companies. The increase follows renewed takeover attempts by Riot Platforms.

Riot Platforms' $950 million acquisition bid for Canadian Bitcoin miner Bitfarms has met with opposition, as Bitfarms' stakeholders and a special committee believe the offer undervalues the company and does not serve shareholders' best interests. Riot initiated its takeover attempt with a proposal on May 28 and further solidified its position by purchasing around six million Bitfarms shares for $111 million, raising its ownership to 13.1%. In response, Bitfarms implemented a shareholder rights plan to fend off the unsolicited takeover and accused Riot of disrupting the acquisition process.

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The conflict escalated with Bitfarms accusing Riot of attempting a hostile takeover and alleging that Riot's actions were not aligned with Bitfarms shareholders' interests. Riot's CEO, Jason Les, criticized Bitfarms' governance and called for the removal of interim CEO Nicolas Bonta, citing poor corporate practices. Bitfarms, meanwhile, maintained that its defensive tactics were necessary to protect regulatory procedures and the company's integrity in the face of Riot's aggressive acquisition strategy.

Despite the ongoing conflict, Bitfarms' stock has jumped over 45% in the past month. Riot, now owning a 12% stake after recent buys, wants to hold a special shareholder meeting to appoint independent directors to Bitfarms' board. This struggle for control highlights major differences in management and strategy between the two companies, with neither side ready to back down.

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