As a seasoned researcher with a keen interest in the dynamic world of Bitcoin mining and the intricate relationships between key players, I find myself captivated by the latest developments between Riot Platforms and Bitfarms Ltd. The strategic acquisitions and countermeasures from both parties have created an engaging narrative that is reminiscent of a corporate thriller.
On August 13, Riot Platforms, the third-largest Bitcoin miner on Wall Street, announced it had boosted its ownership in competitor Bitfarms Ltd by purchasing an extra 1 million common shares from the open market. This information was shared in a regulatory filing.
This $2.28 million transaction boosts Riot’s ownership of Bitfarms to about 85.3 million shares, an increase from the initial 84.3 million. With this acquisition, Riot now controls around 18.9% of Bitfarms, significantly strengthening its control over the Canadian mining company.
Riot Platforms increases Bitfarms stake
This purchase signifies the most recent progression in the persistent disputes between cryptocurrency mining corporations. In May, Riot put forward a surprising $950 million bid to acquire Bitfarms, an offer that was immediately turned down by Bitfarms, who deemed it as an underestimation of the company’s worth.
Responding to this, Bitfarms opted for a “poison pill” strategy to discourage any hostile acquisition attempts by Riot. However, Canadian regulatory bodies objected to this action.
Even though Riot withdrew its original takeover proposal, it has persistently influenced Bitfarms’ management. In June, Riot initiated a call for a special shareholders’ meeting with the aim of ousting specific Bitfarms directors and installing independent ones instead.
It seems that the internal corporate struggles at Bitfarms are bearing fruit. On August 13th, I observed that the company announced the immediate resignation of co-founder and chairman, Nicolas Bonta – one of the three board members who were identified as potential replacements by Riot Blockchain.
Riot is planning to keep assessing its stake in Bitfarms and could potentially make changes, such as altering their holdings or suggesting new members for the board.
Riot’s acquisitions and growth
Beyond its ongoing activities with Bitfarms, Riot has also made successful acquisitions elsewhere. On July 24, Riot finalized the purchase of Block Mining, a company based in Kentucky, for $92.5 million. This acquisition increases Riot’s mining power and extends its geographical reach beyond Texas into new energy markets.
On July 23rd, the Block Mining transaction was concluded, involving an $18.5 million cash transfer and a contribution of $74 million in Riot’s common stock. Moreover, there is a possibility to earn an additional $32.5 million by 2025, if Block Mining manages to secure more power purchase agreements, subject to certain conditions.
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2024-10-25 18:10