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Bitcoin mining giant Riot has announced plans to take over small miner BitFarms in a hostile takeover, which if successful would make the acquired entity the largest publicly traded miner.
American Minerals announced Tuesday made a private offer last month, but Bitfarms rejected the offer.
Riot today acquired a 9.25% stake in Bitfarms – the miner's largest shareholder – and is now offering to buy it for $2.30 per share.
Bitfarms shares (NASDAQ: BITF ) have been on the news and are up about 8% today, currently trading at $2.18 a pop.
“We were disappointed to hear that the BitFarms board rejected our compelling proposal without engaging in a meaningful discussion with us,” Riot's executive chairman Benjamin Yee said in a statement.
“While we have long respected Bitfarms' business and management team, we are confident that Bitfarms' shareholders believe this proposal represents a more attractive alternative to Bitfarms taking an independent direction,” he added.
Riot's CEO, Jason Leas, recently fired Bitfarms CEO Geoffrey Morphy, saying that Bitfarms had mismanaged his operations.
“We are deeply concerned that founders Nicolas Bonta and Emiliano Grodzki on the Bitfarms board may not be acting in the best interests of all Bitfarms shareholders,” said Morphy's abrupt termination and the ousted executive. “Hard Questions.”
BitFarms fired Morphine this month after suing the miner for breach of contract and seeking $27 million in damages. The company declined to respond DecryptQuestions.
Edited by Andrew Hayward.
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