The dispute between Riot Platforms and Bitfarms has escalated
The corporate dispute between crypto miners Riot Platforms and Bitfarms has recently escalated.
On June 11, Riot Platforms significantly increased its stake in Bitfarms, acquiring six million shares worth more than $111 million, bringing its total holding from 9.25 percent to 13.1 percent.
The move comes a day after Bitfarms suggested a “poison pill” defensive strategy to prevent Riot from increasing its stake to 15% or more. The countermeasures are designed to weaken the value of the shares and disrupt Ryot's takeover plan.
In April, Riot submitted a proposal to acquire Bitfarms, offering a higher premium than its current stock market value. The BitFarms board rejected the proposal.
The background to the dispute involves significant internal conflict within Bitfarms. Since May, the company has been dealing with the fallout from the firing of CEO Jeffrey Morphy, who is seeking $27 million in lawsuits alleging breach of contract, wrongful termination and personal injury. The dispute between the companies seems far from being resolved.
This week's CryptoBiz also explores Tether's $1 billion budget for startups, Ripple Labs' new custodian deal, the Circle Program wallet on Solana, and Fireblocks' partnership with Coinbase.
“Not a known VC” – Tether plans to invest up to 1 billion dollars in one year
Stablecoin giant Tether plans to invest a large portion of its revenue in emerging markets, artificial intelligence (AI) and biotech, according to CEO Paolo Arduino. Tether expects to invest at least $1 billion through its venture capital arm in the next 12 months, Arduino said in an interview with Bloomberg published on June 11. According to the CEO, Tether has a growing team of 15 that reviews hundreds of sites. Monthly. Tether's venture capital arm has spent about $2 billion over the past two years on things like AI and alternative financial infrastructure.
Ripple Labs Closes Formal Security Acquisition Agreement
Ripple Labs has completed the acquisition of digital asset custodian Standard Retention. This acquisition could be strategic to Ripple's broader goals of launching a US dollar stablecoin and tokenizing real-world assets. As part of the deal, Standard Protection executive Jack MacDonald will be appointed as Ripple's Senior Vice President of Stablecoins, while he will remain as Standard Protection executive. Ripple has applied for regulatory approval of the company from the New York Department of Financial Services, highlighting standard custody licensing as a core feature of the digital asset custodian. This is Ripple's second acquisition of digital asset protection firm. In 2023, he bought Metacacon for $250 million.
Circle Solana announces programmable wallets, gas stations
Circle is rolling out support for the Solana blockchain on its Web3 services, enabling features like programmable wallets and fuel stations. According to the announcement made on June 12, the merger will take place in two stages. The first chapter focuses on the gas station feature of programmable wallets and sponsored transaction payments. The second phase will include support for non-perishable tokens and program interoperability through a smart contract platform, Circle said. The move aligns Solanna with other blockchains supported by Circle Web3 services, such as Ethereum, Polygon and Avalanche.
Fireblocks Coinbase International for the future, includes spot trading
FireBlocks has partnered with Coinbase to expand its trading services by introducing sustainable futures and spot trading through the Coinbase International Exchange, primarily targeting institutional investors. The integration enables firewalls to support perpetual futures and identify contracts, enhancing business options through predefined security and management protocols. The new capabilities are only available to users in “eligible regions” outside of the United States. Coinbase International, a Bermuda-based company, does not give any indication on its website or terms of service which countries it serves.
Before you go: The US state of Indiana plans to become a hub for the data center and crypto mining industries, promising uninterrupted low-cost power.
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