Riot’s $950 million buyout offer is met with resistance as Bitfarms’ stakeholders and special committee deem it undervalued and not in shareholders’ best interests.
A battle for ultimate ownership is heating up between two Bitcoin mining companies, with Canadian Bitcoin miner Bitfarms accusing Colorado-based Riot Platforms of attempting a hostile takeover.
In its original proposal on May 28, Riot Platforms presented a $950 million buyout offer based on Bitfarms’ one-month volume-weighted average share price as of May 24, 2024.
However, Bitfarms stakeholders were displeased with relinquishing more than 15% of their stake in a corporate takeover. Shortly afterward, in June, Riot announced the purchase of approximately six million Bitfarms common shares for $111 million.
