Riot increases Bitfarms ownership stake following board member removal

Riot Platforms has announced an summation successful its ownership involvement successful Bitfarms Ltd. to 18.9%, intensifying its power implicit the Canadian Bitcoin mining firm. This improvement follows Riot’s acquisition of an further 1 cardinal communal shares of Bitfarms.

Riot confirmed,

“The Purchased Shares were acquired done mean people purchases connected the Nasdaq Stock Market and different unfastened marketplace trades for a weighted mean terms of astir US$2.28 per Purchased Share”

The transaction raised Riot’s full holdings to 85.3 cardinal shares, up from 84.3 cardinal previously, further consolidating its presumption arsenic a important shareholder successful Bitfarms, arsenic reported by Finance Magnates.

The strategical determination comes amid ongoing tensions betwixt Riot and Bitfarms. These tensions began in April erstwhile Riot made an unsolicited $950 cardinal connection to get Bitfarms. Bitfarms rejected the offer, deeming it undervalued, and adopted a “poison pill” defence to thwart hostile takeover attempts.

Despite withdrawing its archetypal acquisition proposal, Riot has continued to exert unit connected Bitfarms’ leadership, including requisitioning a peculiar shareholder gathering successful June to suggest the removal of definite directors and their replacement with autarkic candidates. This boardroom conflict has seen immoderate success, with Bitfarms yesterday announcing the departure of its co-founder and chair, Nicolas Bonta, 1 of the directors Riot sought to replace.

Riot’s actions are portion of a broader strategy to power Bitfarms’ committee creation and strategical direction. The institution has indicated it volition proceed to reappraisal its concern successful Bitfarms, considering further actions specified arsenic adjusting its presumption oregon proposing further committee changes.

In summation to its accrued involvement successful Bitfarms, Riot has been expanding its operations elsewhere. The institution recently acquired Block Mining successful Kentucky for $92.5 million, enhancing its hash complaint and geographical beingness beyond Texas into caller vigor markets. Riot besides reported a 45% increase successful Bitcoin accumulation for July, producing 370 BTC contempt stagnating prices.

The station Riot increases Bitfarms ownership involvement pursuing committee subordinate removal appeared archetypal connected CryptoSlate.