Riot Platforms Acquires 14% Stake in Bitfarms Ltd.

Riot
Platforms,
Inc.
has
announced
the
acquisition
of
a
14%
stake
in
Bitfarms
Ltd.,
according
to
a
recent
press
release
by

Riot
Platforms.
This
move
is
part
of
Riot’s
broader
strategy
to
influence
corporate
governance
within
Bitfarms.

Acquisition
Details

On
June
13,
2024,
Riot
Platforms
acquired
1,432,063
common
shares
of
Bitfarms
Ltd.,
representing
approximately
0.35%
of
the
company’s
issued
and
outstanding
common
shares.
The
shares
were
purchased
on
the
Nasdaq
Stock
Market
and
other
open
market
trades
at
an
average
price
of
approximately
$2.70
per
share,
totaling
$3,870,293.46.

Prior
to
this
acquisition,
Riot
held
56,194,973
common
shares
of
Bitfarms,
translating
to
13.65%
ownership.
With
the
addition
of
the
newly
acquired
shares,
Riot
now
holds
57,627,036
common
shares,
equating
to
a
14%
stake
in
Bitfarms.

Strategic
Intentions

Riot
Platforms
has
expressed
its
intention
to
requisition
a
special
meeting
of
Bitfarms’
shareholders.
At
this
meeting,
Riot
plans
to
nominate
several
independent
directors
to
the
company’s
board,
citing
concerns
over
Bitfarms’
corporate
governance
practices.
Riot
aims
to
influence
the
strategic
direction
of
Bitfarms
and
improve
its
governance
standards.

Riot
is
also
reviewing
its
investment
in
Bitfarms
on
an
ongoing
basis
and
may
adjust
its
position
depending
on
various
factors,
including
market
conditions
and
the
company’s
financial
status.
Riot’s
actions
could
include
increasing
or
decreasing
its
stake,
entering
into
transactions
to
hedge
its
exposure,
or
proposing
further
strategic
actions.

Forward-Looking
Statements

The
press
release
contains
forward-looking
statements
that
are
subject
to
risks
and
uncertainties.
These
statements
reflect
Riot’s
current
expectations
and
assumptions
but
actual
results
may
differ
materially.
Riot
has
cautioned
investors
to
consider
these
risks
and
uncertainties
before
making
investment
decisions.

Riot’s
vision
is
to
become
the
leading
Bitcoin-driven
infrastructure
platform.
The
company
is
focused
on
a
vertically
integrated
strategy,
with
Bitcoin
mining
operations
in
Texas
and
electrical
switchgear
engineering
in
Colorado.

For
more
detailed
information,
the
early
warning
report
will
be
available
under
Bitfarms’
profile
on
the
SEDAR+
website.

Image
source:
Shutterstock