Riot Platforms Boosts Stake in Bitfarms to 18.9% Amid Ongoing Tensions

Riot Platforms has increased its stake in Canadian Bitcoin mining company Bitfarms Ltd. to 18.9%, thereby strengthening its influence over the company.

This development follows Riot’s acquisition of an additional 1 million common shares in Bitfarms.

Riot stated:

The purchased shares were acquired through regular market transactions on the Nasdaq Stock Market and other open market transactions, at an average price of approximately $2.28 per share.

With this transaction, Riot’s total stake in Bitfarms increased to 85.3 million shares, up from 84.3 million previously, solidifying its role as a key shareholder.

This strategic move comes amid ongoing tensions between Riot and Bitfarms. That controversy began in April, when Riot made an unsolicited $950 million bid to acquire Bitfarms.

Bitfarms rejected the offer, describing it as undervalued, and implemented a “poison pill” strategy to prevent hostile takeover attempts.

Although Riot withdrew its initial takeover bid, the company continued to pressure Bitfarms management. This included a request to call a special shareholder meeting in June to propose the removal of certain directors and their replacement with independent nominees.