Connect with us

Hi, what are you looking for?

Income Innovator HubIncome Innovator Hub

Editor's Pick

Riot Platforms Buys 9.25% Stake in Bitfarms After Rejected Takeover Offer

Riot Platforms has acquired a 9.25% stake in Bitfarms after its takeover offer was rejected.

According to a press release Riot Platforms published on May 28, the Bitcoin mining firm’s $950 million offer to acquire all outstanding shares of Bitfarms was turned down by the Bitfarms board. Despite this, Riot proceeded to acquire a 9.25% stake in Bitfarms, making it the largest shareholder.

Riot Platforms Becomes Largest Shareholder


Riot proposed a buyout price of $2.30 per share, representing a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24. Additionally, it reflected a 20% premium over Bitfarms’ share price on April 19, the last trading day before Riot’s initial proposal.

The consideration offered to Bitfarms’ shareholders under the proposal included a combination of cash and Riot common stock, potentially giving Bitfarms’ shareholders ownership of up to 17% of the combined company.

“This cash and stock Proposal would provide Bitfarms’ shareholders with a substantial premium and immediate cash value,” the release reads. “As well as significant potential for future value creation through participation in a financially and commercially stronger company.”

The company stated that the privately delivered proposal was rejected without substantive dialogue. Additionally, the lawsuit brought by Bitfarms’ recently terminated CEO raised concerns about whether certain directors are acting in the best interests of all shareholders.

“As a result, Riot believes it is necessary to disclose its Proposal directly to Bitfarms’ shareholders,” the release reads.

Concerns Over Bitfarms’ Leadership


After Bitfarms’ Annual General and Special Meeting on May 31, 2024, Riot plans to requisition a Special Meeting of Bitfarms’ shareholders to introduce new independent directors to the Bitfarms Board.

“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,” stated Riot Executive Chairman Benjamin Yi.

Riot CEO Jason Les expressed concerns regarding the recent termination of the Bitfarms CEO Nicolas Bonta, suggesting that Nicolas Bonta and Emiliano Grodzki, both the founders of the company, may not be “acting in the best interests of all Bitfarms shareholders.”

The post Riot Platforms Buys 9.25% Stake in Bitfarms After Rejected Takeover Offer appeared first on Cryptonews.

Enter Your Information Below To Receive Latest News, And Articles.

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.
    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    Source: Ark Invest / Instagram ARK Investment Management, led by prominent investor Cathie Wood, has reduced its holdings in the Grayscale Bitcoin Trust (GBTC)...

    Latest News

    A super PAC that has overseen much of Ron DeSantis’s presidential operation has fired its CEO less than two weeks after the previous chief...

    Stock

    Popeyes is expanding its menu beyond chicken sandwiches — and it’s a permanent change this time. The fast-food chain announced Wednesday it’s adding five...

    Latest News

    WINDHAM, N.H. — It’s pouring rain Saturday morning as New Hampshire Gov. Chris Sununu (R) arrives at Mary Ann’s diner in Windham, fielding calls...

    Disclaimer: Incomeinnovatorhub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 incomeinnovatorhub.com