- Riot Platform proposed acquiring Bitfarms for $2.30 per share, valuing the bitcoin mining company at approximately $950 million and offering a 24% premium over its one-month volume-weighted average price.
- Bitfarms rejected the acquisition, maintaining its independence and claiming the offer undervalued its growth potential.
- Bitfarms criticised Riot for not responding to their requests for standard confidentiality and non-solicitation measures, which were intended to facilitate exclusive and meaningful negotiation
Riot Platform, a bitcoin-focused infrastructure company, has proposed acquiring all outstanding shares of Bitfarms, a bitcoin mining company, for a total equity value of around $950 million.
Riot’s bid to become top bitcoin miner
Despite Riot Platform’s substantial offer, Bitfarms decided against the acquisition kast month, maintaining its independence.
Jason Les, chief executive officer of Riot stated: “We were disappointed to learn that the Bitfarms Board rejected our compelling proposal without engaging in substantive dialogue with us.”
With the goal of becoming the biggest publicly traded Bitcoin miner in the world, Riot Platform has suggested purchasing Bitfarms for $2.30 per share.
This proposal offers Bitfarms shareholders substantial value, reflecting a 24% premium over the company’s one-month volume-weighted average price.
The combination would enhance Bitfarms’ financial profile, enabling further investments in growth and offering shareholders a compelling opportunity to benefit from the significant upside of the merged entity.
According to Banjamin Yi, executive chairman of Riot, “A combination of Bitfarms and Riot would create the premier and largest publicly listed Bitcoin miner globally, with geographically diversified operations well-positioned for long-term growth. We were disappointed to learn that the Bitfarms Board rejected our compelling Proposal without engaging in substantive dialogue with us.”
Also read: Bitfarms boosts BTC mining capacity with 51,908 ASICs acquisition
Also read: What’s the best cryptocurrency to invest in?
Bitfarms criticises Riot
In response to a buyout bid from Riot Platforms, Bitfarms, said that the offer “significantly undervalues” Bitfarms and its potential for expansion.
Bitfarm reponses: “A Special Committee of the Board comprised solely of independent directors carefully considered the [April 22] proposal and determined it significantly undervalues the Company and its growth prospects.”
According to Bitfarm, in order to have a meaningful relationship with Riot, it requested standard confidentiality and non-solicitation measures. Riot did not reply to these requests, which were meant to establish an exclusive and exclusive negotiation setting.
