Riot Plans Hostile Takeover of Bitfarms; Proposes $2.30 Per Share
Summary
Riot Platforms (RIOT) has proposed to acquire Bitfarms (BITF), a fellow bitcoin miner, by purchasing all outstanding BITF shares for $2.30 each. This represents a 24% premium to their one-month volume weighted average price as of May 24. Riot, which already owns a 9.25% stake in Bitfarms, would become the world's largest bitcoin miner if the acquisition is successful. However, Bitfarms has rejected the proposal, leading to Riot questioning the commitment of Bitfarms' directors to the best interests of all shareholders. Following Riot's announcement, Bitfarms' shares increased by nearly 6% to $2.13.
