TechFlow news — Bitcoin mining company Riot Platforms has announced that it has increased its stake in rival Bitfarms to nearly 18.9%.
Riot purchased an additional 1 million shares of Bitfarms, bringing its total holdings to approximately 85.3 million shares.
Previously, Riot Platforms held about 18.68% of Bitfarms. The two companies have been embroiled in an acquisition dispute since April this year, when Riot attempted to acquire its Canadian competitor Bitfarms for $950 million—a bid that was rejected by Bitfarms, which argued the offer undervalued the company.
To fend off Riot’s takeover attempt, Bitfarms adopted a "poison pill" strategy, allowing existing shareholders to buy additional shares at a discount, thereby making it more difficult for Riot to increase its stake. Although a Canadian court blocked the first round of the "poison pill" plan last month, Bitfarms has implemented a second-round "poison pill" as a backup measure, stipulating that no single entity may hold more than 20% of the company's shares without board approval.
Riot stated it will continue evaluating its investment in Bitfarms, and its future actions will depend on factors including negotiations between the parties, discussions regarding shareholder meetings, and potential changes to the Bitfarms board.
