Riot Platforms Drops Bitfarms Takeover Bid

Bitcoin miner Riot Platforms (RIOT) has decided to abandon its proposal to acquire peer Bitfarms (BITF) and is now focusing on restructuring the board before considering any future takeover attempts. Riot stated in a press release that after more than a year of trying to engage in constructive discussions with the Bitfarms Board about a potential merger, it has become clear that meaningful negotiations cannot take place until there are significant changes in the Bitfarms boardroom.

Board Overhaul Plan

Riot is putting forth a slate of nominees, including John Delaney, Amy Freedman, and Ralph Goehring, to replace the current members of the Bitfarms board. The miner, now the largest shareholder of Bitfarms with a 14.9% stake, is seeking a special meeting to oust Bitfarms’ Chairman and interim CEO Nicolas Bonta, director Andrés Finkielsztain, and any potential replacement for co-founder Emiliano Grodzki, who resigned. Riot also aims to remove any additional director appointed by the current Bitfarms board.

Hostile Takeover Developments

The public bid for a hostile takeover surfaced last month when Riot made an offer of $2.30 per share to acquire Bitfarms, a move promptly turned down by Bitfarms. Riot proceeded to increase its stake in the company to pressure the board into negotiation. In response, Bitfarms implemented a shareholder rights plan or “poison pill” to discourage Riot’s acquisition attempts.

Riot reaffirmed its commitment to pursuing the takeover, emphasizing that a merger would establish the world’s largest publicly listed bitcoin mining entity, poised for substantial long-term growth. Despite Bitfarms’ shares dipping over 6% on Monday, the stock remains above Riot’s buyout offer price of $2.30 per share, indicating that traders still perceive BITF as a potential target for acquisition. Meanwhile, Riot’s shares experienced a slight decline as bitcoin prices dropped by 3% in the past 24 hours.