Riot and Bitfarms Settle After Hostile Negotiations – What’s Next for Bitcoin Mining?

Riot Platforms Inc. and Bitfarms have finalized a settlement after extensive and contentious negotiations concerning Riot's earlier attempt to acquire Bitfarms.

This agreement precedes a Special Meeting of Bitfarms shareholders set for November 6. Following the news, the stock prices of both companies have improved, as market observers anticipate potential movements in related stocks.

On September 23, the two companies issued a joint statement announcing their settlement, which aims to streamline Riot’s lengthy takeover efforts. Key changes to the Board of Bitfarms are included in the deal, which both companies see as a crucial step forward.

As part of this arrangement, Bitfarms Board member Andres Finkielsztain has resigned, and Amy Freedman has been appointed in his place, along with roles on other committees. Additionally, Riot will withdraw its prior requisition and suspend its efforts until Bitfarms’ 2026 annual meetings. Riot retains the option to acquire up to 15% of Bitfarms’ shares.

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During the upcoming Special Meeting, shareholders will vote on expanding the Board from five to six members, electing an independent director to the new position, and approving a shareholder rights plan established on July 24, 2024. Riot has agreed to support these initiatives.

The tense takeover situation led to a series of disputes between the two firms. Riot initially proposed a $950 million unsolicited bid for Bitfarms and sought to gain control through stock purchases, but Bitfarms rejected this offer, citing Riot’s unconstructive engagement.

In a related move, Bitfarms is reportedly planning to acquire Stronghold Digital Mining in a deal worth $164 million, according to sources. As of now, both companies’ stocks have risen following the settlement news, with BITF currently trading at $2.05, reflecting a 2.5% increase in the last day.

Alexander Stefanov