Bitcoin

Read

Colorado-headquartered crypto mining company Riot Platforms has acquired ownership of a 12% stake in rival Bitfarms despite shorting pressure from Kerrisdale Capital. 
<a href="https://crypto.news/tag/bitcoin/" target="_blank" rel="">Bitcoin</a> mining company <a href="https://crypto.news/tag/riot-blockchain/" target="_blank" rel="">Riot Platforms</a> said in a <a href="https://www.riotplatforms.com/riot-platforms-inc-reports-beneficial-ownership-of-12-in-bitfarms-ltd/" target="_blank" rel="">press release</a> on Jun. 5 it acquired 1,460,278 common shares of <a href="https://crypto.news/tag/bitfarms/" target="_blank" rel="">Bitfarms</a>, becoming the beneficial owner of approximately 12%. The company said the latest purchase, at $2.45 per share, cost Riot over $3.5 million in total. 
Following the acquisition, Riot stated its intention to call a special meeting of Bitfarms’ shareholders. At this meeting, Riot plans to nominate “several well-qualified and independent directors” to the Bitfarms board, citing “serious concerns regarding the board’s track record of poor corporate governance.” 
 You might also like: <a href="https://crypto.news/bitfarms-gets-a-new-ceo-days-after-the-sale-of-a-3-6m-property/" rel=""> Bitfarms gets a new CEO days after the sale of a $3.6m property </a> 
This move comes amid shorting pressure from Kerrisdale Capital, which recently <a href="https://www.kerrisdalecap.com/wp-content/uploads/2024/06/Letter-to-Commissioners.pdf" target="_blank" rel="">disclosed</a> a short position in Riot, citing issues with Riot’s equipment sourced from China and operational concerns, and causing Riot’s shares to drop by as much as 9% to $8.84. However, Riot’s share price rebounded to $9.65 following the announcement of its additional Bitfarms share purchase, according to Google Finance data. 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14277803"> 
 <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/06/giagsyd.png.webp"> 
 <img loading="lazy" decoding="async" width="934" height="646" src="https://crypto.news/app/uploads/2024/06/giagsyd.png" alt="Bitcoin miner Riot Platforms acquires 12% stake in Bitfarms - 21"> 
 </picture> 
 <figcaption class="wp-element-caption">
 RIOT share price in USD | Source: Google
 </figcaption>
</figure> 
In late May, Riot <a href="https://crypto.news/bitfarms-founders-may-not-be-acting-in-best-interests-of-shareholders/" target="_blank" rel="">announced</a> a $950 million acquisition bid for Bitfarms, alleging that Bitfarms’ founders weren’t acting in the best interests of all shareholders. Riot claims its proposal, initially submitted privately in late April, was rejected by the Bitfarms board without substantive engagement. 
Bitfarms <a href="https://investor.bitfarms.com/news-events/press-releases/detail/243/bitfarms-responds-to-unsolicited-proposal-from-riot" target="_blank" rel="">responded</a> by stating that Riot’s offer “significantly undervalues” its growth prospects. The company added that a special committee had requested “customary confidentiality and non-solicitation protections” to which Riot didn’t respond. 
 Read more: <a href="https://crypto.news/riot-platforms-bitcoin-mining-output-surged-by-19-2023/" rel=""> Riot Platforms Bitcoin mining output surged by 19% in 2023: report </a>

Bitcoin miner Riot Platforms acquires 12% stake in Bitfarms

crypto.news

Other articles published on Jun 6, 2024

Are Solana Memecoins the Best Bet in a Crypto Bull Run? Exploring Their Potential

Calling all crypto farmers! The Binance Launchpool party is back with a new project: IO.NET (IO)! 📣🔥

Bitcoin’s low volatility will have THIS effect on BTC prices

Which crypto protocols bring in the biggest fees and costs per user?

Top Altcoins with Cutting-Edge Technology: Bitgert, Chainlink, Nexo

Ripple Analyst Reveals How Far XRP Can Spike This Cycle: Outlines Path and Timeline to $100 and $...

Join our free newsletter for daily crypto updates!