Riot Platforms raises its stake in Bitfarm to 14% by acquiring an additional $3.87 million worth of shares

  • Riot currently holds 14% of Bitfarm’s shares, or 57.62 million.
  • Bitfarms implemented a poison pill earlier this week to thwart Riot Platforms’ potential takeover.

Bitcoin miner Riot Platforms said early on Thursday night that it has purchased an additional 1,432,063 Bitfarms shares for roughly $2.70 per share, or roughly $3.87 million.

At the moment, Riot owns 57.62 million shares, or about 14% of Bitfarms. With its next action, Riot is carrying out its hostile takeover attempt of Bitfarms.

Last month, Riot Platforms attempted to acquire Bitfarms for approximately $950 million. Riot Platforms CEO attacked Bitfarms on Wednesday for their latest attempt to block an acquisition.

In response, Bitfarms has implemented an off-market Poison Pill with a trigger considerably below the typical 20% threshold, according to a statement from Riot Platforms CEO Jason Les. Rather than interacting with us in private and with good intentions, Les stated in a statement.

Bitfarms implemented a poison pill earlier this week in order to thwart any potential takeover. A poison pill seeks to lessen an acquirer’s ownership stake in the company and/or reduce its desirability.

According to Bitfarm’s strategy, the firm would issue new shares, reducing the entity’s position, if an entity accumulated more than 15% of Bitfarm’s stake after June 20 and up to September 10. 

After September 10, if any takeover effort satisfies specific requirements, the threshold will be lowered to 20%.

Riot plans to call a special meeting of Bitfarm’s shareholders in order to propose a number of independent candidates for the board of directors.

Bitfarms’ shares increased by 15% earlier today after the company said that it will build its first large-scale mining facility in the United States and that its 2025 hash rate will surpass 35 EH/s.

Bitfarms is valued at approximately $1 billion, whereas Riot Platforms has a $3.17 billion market capitalization.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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