Bitcoin mining giant Riot Platforms is set to acquire its rival Bitfarms for $950 million, with claims that Bitfarms’ founders may not be acting in the best interests of shareholders. Riot Platforms offered $2.3 per share, aiming to become the largest publicly listed Bitcoin miner globally.
The acquisition offer, initially rejected by Bitfarms’ board, includes cash and stock, allowing Bitfarms shareholders to own up to 17% of the combined company. This proposal promises immediate cash value and future growth potential.
Concerns about Bitfarms’ governance arose from a $27 million lawsuit by former CEO Geoffrey Morphy. Riot Platforms plans to meet with Bitfarms shareholders to introduce independent directors to the board. Following the offer, Riot bought 10% of Bitfarms’ shares, boosting BITF’s stock by nearly 10%.
This strategic move underscores Riot Platforms’ ambition to lead the Bitcoin mining industry, leveraging a stronger financial and commercial position.
