2024

Bitcoin

Block

Riot Platforms, the third largest Bitcoin miner on Wall Street, has significantly increased its stake in rival Bitfarms Ltd. In a regulatory filing on Aug. 13, Riot disclosed acquiring an additional 1 million Bitfarms common shares through open market purchases.&nbsp;
This transaction, valued at approximately $2.28 million, <a data-ct-non-breakable="null" href="https://www.riotplatforms.com/riot-platforms-inc-reports-beneficial-ownership-of-18-9-in-bitfarms-ltd/" rel="null" target="null" text="null" title="null">raises</a> Riot’s total holdings in Bitfarms to 85.3 million shares, up from the previous 84.3 million. With this purchase, Riot now owns 18.9% of Bitfarms, intensifying its influence over the Canadian mining firm.
<h3 id="riot-platforms-increases-bitfarms-stake">Riot Platforms increases Bitfarms stake</h3>
The acquisition marks the latest development in the ongoing tensions between the cryptocurrency mining companies. In May, Riot made an unsolicited $950 million <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/riot-platforms-bitfarms-acquisition-950m-offer" rel="null" target="null" text="null" title="null">offer to acquire Bitfarms</a>, which <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/riot-950m-bitfarms-takeover-rejected" rel="null" target="null" text="null" title="null">Bitfarms promptly rejected</a>, labeling the proposal as undervaluing the company.&nbsp;
In response, Bitfarms adopted a “poison pill” defense to deter Riot’s potential hostile takeover attempts, but the Canadian regulators <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitfarms-stop-poison-pill-strat-riot-takeover-attempt" rel="null" target="null" text="null" title="null">fought this move</a>.
Despite withdrawing its initial acquisition offer, Riot has continued to exert pressure on Bitfarms’ leadership. In June, Riot requisitioned a special shareholder meeting to remove certain Bitfarms directors and replace them with independent candidates.
However, the boardroom battle appears to be yielding results. Earlier on Aug. 13, Bitfarms announced the <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ex-bitfarms-interim-ceo-steps-down-amid-board-shakeup" rel="null" target="null" text="null" title="null">immediate departure of co-founder</a> and chair Nicolas Bonta, one of the three board members Riot targeted for replacement.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-mining-revenue-decline-yearly-low-august-2024" rel="null" target="null" text="null" title="null">Bitcoin miners record lowest daily revenue of 2024</a>
Riot indicated that it would continue to review its investment in Bitfarms and may consider further actions, including adjusting its position or proposing additional changes to the board composition.
<h3 id="riot-s-acquisitions-and-growth">Riot’s acquisitions and growth</h3>
In addition to its ongoing maneuvering with Bitfarms, Riot has succeeded in acquisitions elsewhere. On July 24, Riot <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/riot-platform-buys-kentucky-block-mining-93-million" rel="null" target="null" text="null" title="null">completed the purchase</a> of Kentucky-based Block Mining for $92.5 million. This acquisition significantly boosts Riot’s hashrate and expands its geographical presence beyond Texas into new energy markets.
The Block Mining transaction, finalized on July 23, included an $18.5 million cash payment and $74 million in Riot common stock. Additionally, a potential earn-out of up to $32.5 million is available until 2025, contingent on Block Mining securing further power purchase agreements.&nbsp;
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/china-crypto-ban-investors/" rel="null" target="null" text="null" title="null">How Chinese traders and miners get around China’s crypto ban</a>

Riot Platforms boosts Bitfarms stake with $2.28M share acquisition

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Cointelegraph

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