Riot Platforms Acquires 16.9% Stake in Bitfarms Ltd.

Riot
Platforms,
Inc.
(NASDAQ:
RIOT)
has
announced
the





acquisition
of
a
16.9%
beneficial
ownership
in
Bitfarms
Ltd.,
according
to
a
recent
press
release
by
the
company.
This
strategic
move
is
part
of
Riot’s
broader
plan
to
influence
the
operational
and
strategic
direction
of
Bitfarms.

Details
of
the
Acquisition

On
August
2,
2024,
Riot
Platforms
acquired
380,838
common
shares
of
Bitfarms,
representing
approximately
0.08%
of
the
issued
and
outstanding
common
shares.
The
shares
were
purchased
on
the
Nasdaq
Stock
Market
at
an
average
price
of
approximately
US$2.40
per
share,
totaling
around
US$914,468.21.

Prior
to
this
acquisition,
Riot
owned
75,886,480
common
shares,
accounting
for
16.82%
of
Bitfarms’
total
shares.
After
the
latest
purchase,
Riot’s
ownership
increased
to
76,267,318
shares,
or
16.9%
of
the
company.

Strategic
Implications

Riot
has
been
actively
seeking
to
influence
Bitfarms’
corporate
governance.
On
June
24,
2024,
Riot
requisitioned
a
special
shareholders
meeting
to
remove
Bitfarms’
Chairman
Nicolas
Bonta
and
directors
Andrés
Finkielsztain
and
Fanny
Philip.
Riot
has
nominated
three
independent
candidates
to
replace
them.

Riot’s
intentions
are
to
review
and
possibly
adjust
its
investment
in
Bitfarms
based
on
various
factors,
including
market
conditions,
the
company’s
financial
position,
and
strategic
discussions
with
Bitfarms’
board
and
advisors.
Riot
may
either
increase
or
decrease
its
stake,
or
propose
further
actions
to
align
Bitfarms’
strategy
with
its
own
objectives.

Future
Prospects
and
Statements

Riot
Platforms
has
emphasized
that
this
acquisition
and
related
actions
are
not
a
formal
offer
to
buy
or
sell
any
securities
of
Bitfarms.
The
company
plans
to
file
an
Early
Warning
Report
in
accordance
with
Canadian
securities
laws,
which
will
be
available
on
the
SEDAR+
platform.

Riot’s
vision
is
to
be
a
leading
Bitcoin-driven
infrastructure
platform,
with
operations
in
Bitcoin
mining
and
digital
infrastructure
in
central
Texas
and
Denver,
Colorado.

For
more
information,
visit
Riot
Platforms’
official
website
at

riotplatforms.com.

Image
source:
Shutterstock