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<div class="intro-text">
 Riot Platforms’ $950 million buyout offer for Canadian Bitcoin miner Bitfarms has been met with<a style="color: #0000ff;" href="https://twitter.com/Bitfarms_io/status/1801051060108181969?t=UVPCL1Y0LxiHAtbWl3cYaA&amp;s=19" rel="noopener noreferrer nofollow"> strong resistance</a>. 
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Bitfarms’ stakeholders and special committee<a style="color: #0000ff;" href="https://twitter.com/Bitfarms_io/status/1801051060108181969?t=UVPCL1Y0LxiHAtbWl3cYaA&amp;s=19" rel="noopener noreferrer nofollow"> deemed</a> the offer undervalued and not in the best interests of shareholders. This has escalated into a battle for ultimate ownership between the two Bitcoin mining companies. 
<a style="color: #0000ff;" href="https://investor.bitfarms.com/news-events/press-releases/detail/230/bitfarms-reports-fourth-quarter-andfull-year-2023-results" rel="noopener noreferrer nofollow">Bitfarms has been experiencing financial challenges</a>, including a gross loss of $22 million in 2023, compared to a gross profit of $11 million in 2022. The company also faced an operating loss of $72 million in 2023. Additionally, Bitfarms’ average cost of production per Bitcoin increased due to a significant rise in network difficulty, further squeezing their margins​ 
Riot Platforms aims to<a style="color: #0000ff;" href="https://www.riotplatforms.com/riot-proposes-to-acquire-bitfarms-for-us2-30-per-share-to-create-the-worlds-largest-publicly-listed-bitcoin-miner/" rel="noopener noreferrer nofollow"> expand</a> its foothold in Bitcoin mining by acquiring Bitfarms. This strategic move is seen as a way to increase Riot’s mining capacity and market share. By consolidating resources, Riot likely aims to enhance operational efficiency and competitiveness in the rapidly evolving Bitcoin mining sector. 
On May 28, Riot Platforms<a style="color: #0000ff;" href="https://www.riotplatforms.com/riot-proposes-to-acquire-bitfarms-for-us2-30-per-share-to-create-the-worlds-largest-publicly-listed-bitcoin-miner/" rel="noopener noreferrer nofollow"> proposed</a> a $950 million buyout based on Bitfarms’ one-month volume-weighted average share price as of May 24, 2024. However, Bitfarms stakeholders were displeased with the offer, which would result in them relinquishing more than 15% of their stake. 
In June, Riot<a style="color: #0000ff;" href="https://www.sec.gov/Archives/edgar/data/1167419/000110465924070667/tm2415618d14_sc13da.htm" rel="noopener noreferrer nofollow"> purchased</a> approximately six million Bitfarms common shares for $111 million, increasing its stake in Bitfarms to 13.1%.&nbsp;
Bitfarms responded,<a style="color: #0000ff;" href="https://investor.bitfarms.com/news-events/press-releases/detail/248/bitfarms-issues-statement-regarding-riot-platforms" rel="noopener noreferrer nofollow"> accusing</a> Riot of attempting a hostile takeover and undermining the integrity of the acquisition process. 
<blockquote>
 “It is clear that Riot’s interests are not aligned with those of Bitfarms shareholders, and instead of participating in the Special Committee’s process in good faith, Riot is attacking Bitfarms’ Board and corporate governance in an effort to push its low-ball bid and disrupt the Strategic Alternatives Review Process.”
 
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On June 10,<a style="color: #0000ff;" href="https://investor.bitfarms.com/news-events/press-releases/detail/244/bitfarms-announces-results-of-annual-general-and-special" rel="noopener noreferrer nofollow"> Bitfarms adopted a shareholder rights plan</a> to prevent an “unsolicited takeover bid” from Riot Platforms. 
The special committee, comprising independent directors, concluded that Riot’s proposal significantly undervalues Bitfarms and is not in shareholders’ best interests.
Bitfarms<a style="color: #0000ff;" href="https://investor.bitfarms.com/news-events/press-releases/detail/248/bitfarms-issues-statement-regarding-riot-platforms" rel="noopener noreferrer nofollow"> claimed</a> its response was in the best interest of its shareholders and accused Riot of trying to “short circuit” the decision-making process. Bitfarms currently runs 12 Bitcoin mining facilities across Canada, the United States, Paraguay, and Argentina.
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The post <a href="https://defi-planet.com/2024/06/riots-950-million-buyout-met-with-resistance-by-bitfarms/" rel="noopener noreferrer nofollow">Riot’s $950 Million Buyout Met with Resistance by Bitfarms</a> appeared first on <a href="https://defi-planet.com" rel="noopener noreferrer nofollow">DeFi Planet</a>.

Riot’s $950 Million Buyout Met with Resistance by Bitfarms

DeFi Planet

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