The hostile offer comes after a private offer to the board was rejected in April.
Bitcoin miner Riot Platforms has announced an offer to buy Bitfarms at a significant premium over its share price. Riot made an offer to its smaller Canadian competitor’s board on April 22 and is publicizing its intentions after that offer was rebuffed.
Colorado-based Riot is already Bitfarms’ largest shareholder, with a 9.25% stake. It has now offered combined cash and common stock to shareholders that would represent about $950 million in equity value, or a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24, 2024. Bitfarms shareholders would own about 17% of the combined company.
Riot said in a statement that the offer “would provide Bitfarms’ shareholders with […] potential for future value creation through participation in a financially and commercially stronger company with a well-defined strategy, led by an established and proven management team.”
