Riot Platforms Proposes $950M Takeover of Bitfarms at $2.30 Per Share to Form Largest Bitcoin Miner

May 28, 2024, 12:42 PM

Riot Platforms has acquired a 9.25% stake in Bitfarms and proposed a takeover bid to acquire the smaller Bitcoin miner for $2.30 per share. The proposed acquisition, valued at $950 million, aims to create the world's largest publicly listed Bitcoin miner with a combined mining capacity of 51 EH/s and a mining fleet of approximately 169,000, second to Core Scientific. Riot's CEO, Jason Les, expressed concerns about the governance at Bitfarms, particularly regarding the actions of its founders, Nicolas Bonta and Emiliano Grodzki. The proposal offers a 24% premium to Bitfarms' current share price. However, Bitfarms' board has rejected the offer. Shares of Bitfarms have jumped following the proposal, trading at $2.24, just 2% off the offer price. The proposal comes a few weeks after former CEO of Bitfarms, Geoffrey Morphy, filed a lawsuit against Bitfarms for wrongful dismissal and aggravated damages.