Riot plans to acquire Bitfarms for $2.30 per share, with the goal of creating the largest publicly registered Bitcoin miner ever. As a result, Bitfarm’s price will receive a significant premium of 24%, which will benefit shareholders.
Riot is currently Bitfarms’ largest shareholder, owning 9.25% of the company’s stock. The stake in the proposal handed over by Riot to Bitfarms is valued at approximately $950 million.
On April 22, 2024, the Bitfarms board of directors received the proposal privately, but Riot rejected it without further discussion. In addition, Bitfarms filed a lawsuit against the CEO and was expelled from the company, raising questions about the credibility and sincerity of the board of directors.
Taking this into consideration, Riot decided to submit a proposal directly to Bitfarms shareholders in June. Additionally, we will ask you to recruit qualified directors to strengthen the management of the company. Shareholders will reap rewards from building the largest Bitcoin mining rig ever. This will provide the company with additional positions to expand its operations and leverage Riot’s financial strength to drive its overall development.
Riot plans to request a special general meeting of Bitfarms shareholders to appoint new, independent and qualified directors to the Bitfarms Board of Directors following the Annual General Meeting and Special General Meeting scheduled for May 31, 2024.
According to Riot Chairman Benjamin Yi, the merger of Riot and Bitfarms will result in a lucrative outcome, as they will not only become the largest publicly registered Bitcoin miner, but will also open and open offices in financially flexible locations. It will. He is confident that Bitfarm’s shareholders will not disappoint them.
Riot CEO Jason Les stated that Bitfarms founders Nicolas Bonta and Emiliano Grodzki are acting in a suspicious manner and that their actions do not appear to be legal. In his view, the CEO’s resignation is very important and casts a shadow over the whole situation. For this reason, Bitfarms has called a special meeting to allow shareholders to elect new board members who will fix the company’s flawed corporate governance and ensure that all shareholders receive the maximum benefit from their investments.