Does Riot Platforms plan to acquire Bitfarms to become Bitcoin mining tycoon?

Mining giant Bitcoin, Riot, has announced plans to acquire Bitfarms in a move aimed at creating the world’s largest public mining company.

On Tuesday, Riot announced that they had made an offer to acquire Bitfarms last month, but Bitfarms rejected the offer.

Riot has announced that they have currently accumulated 9.25% of the shares in Bitfarms to become the largest shareholder of the company and is proposing to purchase at a price of $2.30 per share.

Bitfarms stock (NASDAQ: BITF) has risen nearly 8% on this news, currently trading at $2.18 per share.

“We are disappointed to learn that the Bitfarms board of directors has rejected our attractive offer without engaging in meaningful dialogue. While we have long respected Bitfarms’ operations and management team, we believe that Bitfarms shareholders will agree that this proposal represents a much more attractive option than Bitfarms’ standalone journey.”

Riot’s CEO, Benjamin Yi, said

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CEO of Riot, Jason Less, stated that Bitfarms has mismanaged its business operations, especially following the recent dismissal of Bitfarms’ CEO, Geoffrey Morphy.

“We are very concerned that the founders of Bitfarms’ board of directors - Nicolas Bonta and Emiliano Grodzki - may not be acting in the best interest of all Bitfarms shareholders,” he added, noting that Morphy’s sudden dismissal and the lawsuit by the former director are raising serious questions.

Bitfarms has fired Morphy this month after he filed a lawsuit against the company, demanding 27 million USD in compensation for contract violations.

VIC Crypto Digest