Rebecca Moen
03 Aug 2024 13:04
Riot Platforms, Inc. reported that it has significantly increased its stake in Bitfarms Ltd. to 16.9%, in an attempt to influence the composition of the company’s board of directors.
Riot Platforms, Inc. (NASDAQ: RIOT) announced: take over According to the company’s recent press release, this is a 16.9% beneficial ownership of Bitfarms Ltd. This strategic move is part of Riot’s broader plan to influence Bitfarms’ operations and strategic direction.
Acquisition Details
On August 2, 2024, Riot Platforms acquired 380,838 common shares of Bitfarms, representing approximately 0.08% of the issued and outstanding common shares. The shares were purchased on the Nasdaq Stock Exchange at an average price of approximately $2.40 per share, for a total consideration of approximately $914,468.21.
Prior to this acquisition, Riot owned 75,886,480 shares, which represented 16.82% of Bitfarms’ total stock. Following the recent purchase, Riot’s ownership increased to 76,267,318 shares, or 16.9% of the company.
Strategic significance
Riot has been actively trying to influence Bitfarms’ corporate governance. Riot has called a special shareholder meeting on June 24, 2024 to remove Bitfarms’ Chairman Nicolas Bonta and Directors Andrés Finkielsztain and Fanny Philip. Riot has nominated three independent candidates to replace them.
Riot’s intention is to review and possibly adjust its investment in Bitfarms based on a variety of factors, including market conditions, the Company’s financial condition, and strategic discussions with Bitfarms’ Board of Directors and advisors. Riot may increase or decrease its stake or propose additional actions to align Bitfarms’ strategy with its own objectives.
Forward Looking Statements and Statements
Riot Platforms emphasized that this acquisition and related actions do not constitute a formal offer to buy or sell Bitfarms securities. The company plans to file an early warning report under Canadian securities laws available on the SEDAR+ platform.
Riot’s vision is to be the leading Bitcoin-based infrastructure platform operating Bitcoin mining and digital infrastructure businesses in Central Texas and Denver, Colorado.
For more information, please visit the official Riot Platforms website (riotplatforms.com).
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