Bitcoin

Riot Blockchain Announces Proposed Acquisition of Bitfarms at $2.30 Per Share

Cryptocurrency news outlet, Cryptochronicle.xyz, reported that Riot Platforms, Inc. has proposed to acquire Bitfarms Ltd. for $2.30 per share. The acquisition aims to create the largest publicly listed Bitcoin miner globally.
According to the report, the proposed acquisition price represents a 24% premium to Bitfarms’ one-month volume-weighted average share price as of May 24, 2024. The overall value of the proposal is approximately $950 million in total equity value.
The strategic rationale behind the acquisition is to offer significant benefits to both Riot and Bitfarms shareholders. The combined entity would become the largest Bitcoin miner in the world with a capacity of up to 1.5 GW of power capacity and 52 EH/s of self-mining capacity.
Additionally, the acquisition would provide geographic diversification with 15 facilities across the United States, Canada, Paraguay, and Argentina, totaling up to 2.2 GW of total power capacity when fully developed.
Riot Platforms plans to requisition a Special Meeting of Bitfarms’ shareholders to add new, independent directors to the Board in response to governance concerns and allegations raised by Bitfarms’ recently terminated CEO.
The proposal includes a mix of cash and Riot common stock, with Bitfarms’ shareholders owning up to approximately 17% of the combined company. The proposal is subject to customary conditions, including entering into a definitive transaction agreement.
Financial advisor Citi and legal advisors Paul, Weiss, Rifkind, Wharton & Garrison LLP and Davies Ward Phillips & Vineberg LLP are assisting Riot Platforms in the acquisition. For more information, readers can visit the official Riot Platforms website. Image source: Shutterstock.

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