Bitcoin

April

<div class="coinjournal">
 <ul>
  <li>Riot Platforms offers $950M to acquire Canadian Bitcoin miner Bitfarms.</li>
  <li>Bitfarms is facing leadership turmoil amid CEO Geoffrey Morphy’s lawsuit.</li>
  <li>The merger would create largest publicly listed Bitcoin miner by capacity.</li>
 </ul>
 <p>Riot Platforms, a prominent Bitcoin miner and Bitfarms’ largest shareholder, has made a hostile takeover offer of $950 <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a> for Bitfarms, a Canadian Bitcoin mining company.</p>
 <p>Riot’s buyout offer represents a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24, 2024.</p>
 <h2 id="shareholders-to-own-17-of-bitfarms-after-riot-s-takeover">Shareholders to own 17% of Bitfarms after Riot’s takeover</h2>
 <p>Riot Platforms, already the largest shareholder in Bitfarms with a 9.25% stake, had initially approached Bitfarms’ board with a private offer on April 22.</p>
 <p>However, following the rejection of the offer, Riot has now taken the proposal public.</p>
 <p>The deal would involve a combination of cash and common stock, with Bitfarms shareholders standing to own approximately 17% of the merged entity.</p>
 <h2 id="bitfarms-disputes-with-former-ceo">Bitfarms’ disputes with former CEO</h2>
 <p>The timing of Riot’s bid coincides with a period of transition and turmoil within Bitfarms’ management. The company has been grappling with the departure of its CEO, Geoffrey Morphy, who was dismissed in May amidst a legal dispute.</p>
 <p>Morphy’s abrupt exit and subsequent lawsuit against Bitfarms for breach of contract and wrongful dismissal have raised questions about the company’s leadership stability and governance practices.</p>
 <p>Riot Platforms has seized upon these developments to assert its case for the acquisition, alleging that certain directors, including Bitfarms’ co-founders Nicolas Bonta and Emiliano Grodzki, may not be acting in the best interests of shareholders.</p>
 <p>Riot has pledged to push for the addition of new, independent directors to Bitfarms’ board through a special shareholders meeting scheduled after the company’s upcoming Annual General and Special Meeting on May 31.</p>
 <h2 id="bitfarms-disappointing-earnings-compared-to-riot-platforms">Bitfarms’ disappointing earnings compared to Riot Platforms</h2>
 <p>Notably, Bitfarms’ disappointing earnings in 2023, despite a costly technical upgrade, have contributed to its vulnerability.</p>
 <p>Analysts had expected better performance post-Bitcoin halving, but Bitfarms’ April earnings dropped 29% year-on-year.</p>
 <p>In contrast, Riot reported a 131% increase in net income in Q1 2024, reaching $211 <a rel="noopener noreferrer nofollow" title="million" href="https://thebittimes.com/tag/million.html">million</a>.</p>
 <p>If successful, the combined entity would emerge as the largest publicly listed Bitcoin miner, boasting significant self-mining and power capacities.</p>
 <p>Riot Platforms envisions leveraging this enhanced scale and operational efficiency to drive future value creation for shareholders and strengthen its competitive position in the burgeoning cryptocurrency mining industry.</p>
</div>
<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/riot-platforms-wants-to-buy-bitfarms-for-950-million-tbt90228.html">https://thebittimes.com/riot-platforms-wants-to-buy-bitfarms-for-950-million-tbt90228.html</a></p>

Riot Platforms wants to buy Bitfarms for $950 million

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TheBitTimes

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