Bitcoin miner Riot Platforms has withdrawn its $2.30 per share bid for Bitfarms (NASDAQ: BITF) and is now seeking to secure three board seats to facilitate further talks on acquiring the company. This shift comes after Bitfarms rejected Riot’s $950 million acquisition offer.
Riot, which owns nearly 15% of Bitfarms, believes board changes are essential for constructive discussions about the merger. They have nominated John Delaney, Amy Freedman, and Ralph Goehring for Bitfarms’ board to enhance independence and governance.
Riot has requested a shareholder meeting to vote on removing current board members, including Chairman and Interim CEO Nicolas Bonta, citing poor governance and failure to unlock Bitfarms’ value. Following this announcement, Bitfarms’ stock fell by 5% to $2.94.
Bitfarms had previously implemented a “poison pill” defense to prevent any entity from acquiring more than 15% without board approval. Riot’s CEO Jason Les criticized this plan, calling it legally questionable. This move is part of a broader trend in the Bitcoin mining industry, driven by declining mining rewards after the 2024 Bitcoin Halving event.
The outcome of this power struggle could significantly impact the future of both companies and the Bitcoin mining sector. The strategic importance of this move lies in Riot’s attempt to consolidate control and navigate the evolving economic landscape in the industry.
