2024

Bitcoin

April

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/riot-platforms-offers-to-acquire-bitfarms-at-a-premium/" data-wpel-link="internal">Riot Platforms Offers to Acquire Bitfarms at a Premium</a><br></p>
<p class="p1" style="text-align: justify"><a href="https://en.coin-turk.com/bitcoin-etfs-balancing-investment-appeal-with-custody-risks/" data-wpel-link="internal">Bitcoin</a> miner <strong>Riot Platforms</strong> announced an offer to acquire Bitfarms at a significant premium over its <a href="https://finance.coin-turk.com/" data-wpel-link="exclude">share price</a>. Riot made an offer to the board of the smaller Canadian competitor on April 22 and reported developments after the offer was rejected. Colorado-based Riot is already the largest shareholder of Bitfarms with a 9.25% stake.</p> 
<h2 class="p1" style="text-align: justify" id="what-s-happening-at-riot-platforms">What’s Happening at Riot Platforms?</h2> 
<p class="p1" style="text-align: justify">The company offered shareholders approximately $950 million in equity value or a combined cash and common stock representing a 24% premium over Bitfarms’ volume-weighted average share price for the month ending May 24, 2024. Riot shared the following statement regarding the offer:</p> 
<blockquote> 
 <p class="p1" style="text-align: justify">“Bitfarms shareholders can join a financially and commercially stronger company managed by an established and proven management team, potentially creating <a href="https://newslinker.co" target="_blank" rel="noopener" data-wpel-link="exclude">future</a> value.”</p> 
</blockquote> 
<p class="p1" style="text-align: justify">Bitfarms’ management is in transition, searching for a new CEO. The company announced its search on March 25, and then-CEO and president <strong>Geoffrey Morphy</strong> expressed confidence in the management team’s ability to achieve the 2024 growth targets. Initially, Bitfarms intended to keep Morphy while searching for his replacement. On May 10, Morphy filed a lawsuit against the company for breach of contract, wrongful termination, and compensation, demanding $27 million. Bitfarms terminated Morphy on May 13 and appointed president and co-founder Nicolas Bonta as his replacement.</p> 
<p class="p1" style="text-align: justify">Riot identified co-founders Bonta and Emiliano Grodzki as the relevant executives. The company stated it would request a special Bitfarms shareholders meeting to add new qualified and independent directors to the Bitfarms Board after the May 31 Annual General and Special Meeting.</p> 
<p class="p1" style="text-align: justify"><img loading="lazy" loading="lazy" decoding="async" class="aligncenter wp-image-356959" src="https://coin-turk.com/wp-content/uploads/2024/05/matt-c.webp" alt="" width="500" height="357"></p> 
<h2 class="p1" style="text-align: justify" id="details-of-the-process">Details of the Process</h2> 
<p class="p1" style="text-align: justify">Bitfarms showed disappointing earnings on an annual basis in 2023. It began a costly technical upgrade in preparation for Bitcoin halving events. Analysts expected Bitfarms to perform well post-halving, but April earnings fell 29% compared to the previous year. Riot’s net income increased by 131% to $211 million in the first quarter of 2024. It has not released financial information since then.</p> 
<p class="p1" style="text-align: justify">According to Riot, a combined company would have approximately 1 GW of current power capacity and 19.6 EH/s of current self-mining capacity, with up to 1.5 GW of power capacity and 52 GW, making it the largest capacity among any publicly traded Bitcoin miner.</p> 
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on COINTURK NEWS: </span> <a href="https://en.coin-turk.com/riot-platforms-offers-to-acquire-bitfarms-at-a-premium/" data-wpel-link="internal">Riot Platforms Offers to Acquire Bitfarms at a Premium</a></h5>

Riot Platforms Offers to Acquire Bitfarms at a Premium

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