TechFlow news — On July 31, according to Cryptoslate, Bitcoin mining company Riot Platforms has intensified its acquisition efforts toward rival Bitfarms, purchasing approximately 10 million additional shares this month and now holding 15.9% of Bitfarms' shares, valued at $159.1 million. This latest purchase follows the Ontario Capital Markets Tribunal's decision to cancel Bitfarms' original shareholder rights plan, which would have diluted the stake of any single entity acquiring more than 15% of the company. Previously holding 14.9%, Riot swiftly moved to increase its stake after the plan was lifted and Bitfarms raised the dilution threshold to 20%.
Riot had previously made a $950 million takeover offer in April, which was rejected. Since then, Riot has called for a special shareholder meeting and nominated three new directors. Riot has criticized Bitfarms for poor corporate governance and frequent management changes, alleging that the current board prioritizes personal interests. Nevertheless, the Bitfarms board stated it is unaware of any potential takeover threat and believes Riot’s initial bid undervalued the company. Bitfarms also said it has begun evaluating strategic options to protect shareholders from potential acquisition attempts.
