Riot Unveils Potential Takeover of Bitfarms: Could This Be the Next Bitcoin Mining Giant in the Making?

Bitcoin Mining Giant in the Making? Riot Reveals Bitfarms Takeover Plan

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Bitcoin mining powerhouse Riot has revealed its intentions to acquire smaller miner Bitfarms in a hostile takeover bid, potentially creating the largest publicly-traded miner in the world.
The U.S. miner disclosed on Tuesday that it had submitted a private proposal last month, which was subsequently rejected by Bitfarms. Riot now owns a 9.25% stake in Bitfarms, making it the largest shareholder, and is looking to buy the company for $2.30 per share.
Following the announcement, Bitfarms shares (NASDAQ: BITF) surged by nearly 8%, currently trading at $2.18 per share.
Riot’s executive chairman, Benjamin Yi, expressed disappointment in Bitfarms’ rejection of their proposal without engaging in meaningful discussions. He believes that Riot’s offer provides a more attractive opportunity for Bitfarms shareholders compared to their standalone strategy.
Riot’s CEO, Jason Less, criticized Bitfarms for mismanaging its business, especially following the dismissal of CEO Geoffrey Morphy. Less raised concerns about the motives of Bitfarms’ founders, Nicolas Bonta and Emiliano Grodzki, questioning their decisions in the best interest of all shareholders.
Bitfarms terminated Morphy this month after he filed a lawsuit against the company seeking $27 million in damages for breach of contract. Bitfarms has yet to address Decrypt’s inquiries on the matter.
Edited by Andrew Hayward
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