Riot’s acquisition of Bitfarms is likely to be rejected due to the Bitfarms board’s disapproval and insufficient premiums offered. Analysts at H.C. Wainwright believe the premium isn’t enough to gain shareholder approval.
Bitfarms’ board quickly rejected Riot’s initial April proposal without substantive dialogue. The proposed $950 million offer includes cash and stock, allowing Bitfarms shareholders to retain up to 17% ownership in the merged entity.
Riot plans to address Bitfarms shareholders at their annual meeting to discuss appointing new independent directors over the next four months. Riot has over $700 million in cash and nearly 9,000 unencumbered Bitcoins, highlighting its capability to finalize the acquisition.
This acquisition could create the world’s largest publicly-listed Bitcoin miner, marking a significant milestone in the crypto-mining industry. The outcome will shape the strategic direction and market positioning of both companies.
