Crypto miner Riot Platforms (RIOT), having acquired a 9.25% stake in competitor Bitfarms (BITF), is pursuing a takeover attempt at $2.30 per share – a 24% premium over Bitfarms’ prior share price.
Bitfarms has rejected the offer, responding that it “significantly undervalues the company and its growth prospects.” If the combination is consummated though, RIOT will become the largest publicly traded Bitcoin miner.
The timing of the transaction seems to be an opportunistic attempt to take advantage of the turmoil that is currently occurring inside of Bitfarms. In March, Bitfarms announced a CEO transition that ultimately resulted in a $27 million lawsuit for breach of contract.
Regardless of the outcome, the potential takeover is a significant event that will be closely watched by all in the industry. It could mark a new era in publicly traded crypto companies, potentially reshaping the landscape of the industry.
Update June 3, 2024: Riot disclosed an increase in its ownership in Bitfarms to 11%, becoming Bitfarms’ largest shareholder.
