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Riot Platforms, a company that deals with <a href="https://coingape.com/us-presidential-candidate-donald-trump-meets-bitcoin-miners-in-the-us-whats-cooking/" target="_blank" rel="noopener">cryptocurrency mining</a>, has increased its holdings in <a href="https://coingape.com/bitcoin-miner-riot-platforms-eyes-bitfarms-acquisition-950m-deal/" target="_blank" rel="noopener">Bitfarms</a> with a 13.1% stake. This particular acquisition was revealed through a filing with the United States Securities and Exchange Commission on June 11. Riot bought about six million ordinary shares in three separate transactions, with a total value of over $111 million. 
<h2 id="strong-riot-disputes-bitfarms-takeover-defense-measures-strong">Riot Disputes Bitfarms’ Takeover Defense Measures</h2> 
<a href="https://coingape.com/bitcoin-miner-riot-platforms-eyes-bitfarms-acquisition-950m-deal/" target="_blank" rel="noopener">Riot Platforms</a>’ hostile acquisition approach was discovered when Bitfarms adopted a shareholder rights plan on 10th June. This plan, sometimes known as a ‘poison pill,’ is meant to prevent an opponent, in this case Riot, from trying to raise its ownership beyond a 15 percent threshold by decreasing shareholder value. Riot’s CEO Jason Les expressed concerns about this move, stating it deviated from the “established legal and governance standards.” He further noted that the usual threshold for such actions is at 20%, hence suggesting that Bitfarms might have overreached themselves in their defense tactics. 
Nevertheless, Bitfarms justified itself by following Canadian securities laws, which means that Riot could proceed with its acquisition. This has created a lot of buzz on the stock market, especially on the <a href="https://coingape.com/semler-scientific-buys-40m-in-bitcoin-adopts-btc-treasury-strategy/" target="_blank" rel="noopener">Nasdaq</a>, where Bitfarms’ stock price rose by over 56%. 
<h2 id="strong-bitfarms-ceo-resigns-amidst-takeover-turmoil-strong">Bitfarms CEO Resigns Amidst Takeover Turmoil</h2> 
The background of this increasing takeover battle at Bitfarms is accompanied by drastic changes in its leadership. The company recently lost its CEO, Geoffrey Morphy, who resigned after the company was sued. Nicolas Bonta has since stepped up to the plate as the current interim president and CEO. Riot, a large corporation, Les has also personally attacked Bonta and called for his removal from the position due to alleged “poor corporate governance.” 
This leadership conflict is one more factor complicating an already rather intricate acquisition story. Riot Platforms, which offered a $950 million buyout of Bitfarms in May, a 24% premium over Bitfarms’ average share price, is now in a vulnerable situation. The acquisition proposed aligns with Riot’s strategy of enhancing its market position in the competitive cryptocurrency mining sector. 
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Also Read: <a href="https://coingape.com/binance-adds-new-trading-pairs-for-notcoin-and-dogwifhat/" target="_blank" rel="noopener">Binance Adds New Trading Pairs for Notcoin and Dogwifhat</a> 
The post <a href="https://coingape.com/riot-platforms-takes-13-stake-in-bitfarms-to-foil-hostile-takeover/">Riot Platforms Takes 13% Stake In Bitfarms To Foil Hostile Takeover</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Riot Platforms Takes 13% Stake In Bitfarms To Foil Hostile Takeover

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