BITF - Riot Platforms boosts stake in Bitfarms to 14%

2024-06-14 10:32:41 ET

Bitfarms Ltd (NASDAQ: BITF) is gaining this morning after Riot Platforms Inc (NASDAQ: RIOT) increased its stake in the Bitcoin miner to about $14%.

Riot now owns over 59 million Bitfarms shares

Riot Platforms loaded up on 1.43 million shares of Bitfarms on Thursday. In total, it now owns 59.2 million shares of BITF.

RIOT also reiterated plans of calling a special meeting of those invested in Bitfarms on Friday where it intends to nominate several independent directors to the crypto miner’s board.

The Nasdaq-listed firm has “serious concerns regarding the Board’s track record of poor corporate governance”, as per its press release on Friday.

Bitfarms stock is down more than 20% versus its year-to-date high at writing.

The news arrives more than a month after Riot Platforms reported its financial results for the first quarter that missed Street estimates.

BITF recently opted for a ‘poison pill’

Earlier in June, Bitfarms opted for a “ poison pill ” to ward off a potential hostile takeover from Riot Platforms for $2.30 per share.

RIOT first proposed (privately) to acquire Bitfarms in April – an offer that the latter rejected citing “significant undervaluation”. The $3.14 billion firm based out of Castle Rock, Colorado then took its $950 million proposal for the bitcoin miner public in May.

The digital infrastructure company is “reviewing its investment on a continuing basis” and may choose to adjust its stake in BITF based on several factors, including but not restricted to market conditions and financial status of the company.

Unlike Bitfarms stock, Riot shares are in the red at writing.

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