Riot intends to take over Bitfarms at a price of $2.30 per share, with the goal of creating the largest ever publicly registered Bitcoin miner. The result will be a substantial premium on Bitfarm’s price—24%—which will be a boon to shareholders.
Riot is presently the biggest shareholder of Bitfarms, owning 9.25% of the company’s shares. The proposal handed over to Bitfarms by Riot amounts to roughly $950 million in equity value.
On April 22, 2024, the Bitfarms’ Board received the offer in private, but Riot rejected it without any further discussions. In addition, Bitfarms filed a lawsuit against its CEO, which resulted in his expulsion from the company, raising questions about the board of directors’ reliability and their true intentions.
Advertisement
In light of the aforementioned, Riot has resolved to directly present the proposal to the shareholders of Bitfarms in June. In addition, a request will be made to recruit qualified directors to enhance the company’s administration. Shareholders will reap the rewards of the construction of the largest Bitcoin miner ever. It will provide additional locations for the company to expand its operations and capitalize on Riot’s financial strength to foster overall development.
Riot intends to request a Special Meeting of Bitfarms’ shareholders to appoint new, independent, and well-qualified directors to the Bitfarms Board following the Annual General and Special Meeting, which is scheduled for May 31, 2024.
According to Riot Executive Chairman Benjamin Yi, the amalgamation of Riot and Bitfarms will produce lucrative results, with them becoming the biggest publicly registered Bitcoin miner, as well as reaching out and opening offices in financially variable locations. He is certain that Bitfarm’s shareholders will not let them down.
Advertisement
The chief executive officer of Riot, Jason Les, has stated that the founders of Bitfarms, Nicolas Bonta and Emiliano Grodzki, are behaving in a suspicious manner and that their actions do not appear to be legal. According to his perspective, the CEO’s departure is of extraordinary importance and casts a shadow over the entire situation. For this reason, Bitfarms has convened a Special Meeting to allow shareholders to elect new board members who will fix the company’s flawed corporate governance and ensure that all shareholders get the most out of their investment.
