Bitfarms, one of the leading Bitcoin miners, has responded to what it calls “misleading claims” made by rival Riot Platforms in a detailed rebuttal. The tensions between the two companies escalated after Riot criticized Bitfarms’ plan to acquire Stronghold Digital in an open letter to shareholders on September 3. Bitfarms issued a press release on September 4, emphasizing that Riot’s proposal is not about corporate governance but rather an attempt to acquire Bitfarms at a discounted price, primarily benefiting Riot shareholders instead of Bitfarms’ investors.
Refusal to Engage in Meaningful Discussions
Bitfarms claimed that Riot has refused to engage in meaningful discussions, including declining to sign a standard non-disclosure agreement or submit a revised proposal. Instead, Bitfarms accuses Riot of taking actions that undermine the interests of its shareholders. The recent leadership changes at Bitfarms were made independently of Riot’s involvement and were implemented to strengthen shareholder value. Bitfarms highlighted the qualifications of its leadership team and questioned the potential value that Riot’s board nominees could offer.
Proposed Acquisition of Stronghold Digital
Bitfarms reiterated that its proposed acquisition of Stronghold Digital is part of its ongoing strategy to diversify energy access and expand its presence in the US. The acquisition could add up to 307 megawatts (MW) of power capacity, aligning with Bitfarms’ goal to grow its energy portfolio to over 950 MW by the end of 2025, with nearly half of that capacity based in the US. The company stated that the Board would review and respond to Riot’s amended requisition proposal in due course but advised shareholders that no immediate action was required. Bitfarms reaffirmed its commitment to enhancing shareholder value in both the short and long term.
Dispute Over Acquisition and Corporate Governance
The dispute between Bitfarms and Riot began earlier this year when Riot made an unsolicited offer to acquire Bitfarms, which was rejected by Bitfarms due to concerns about undervaluation. Riot persisted in its pursuit and pushed for changes in Bitfarms’ corporate governance, suggesting improvements in leadership and strategic direction were necessary. Riot nominated its own slate of candidates for Bitfarms’ board, arguing that fresh perspectives were needed to align the company’s strategy with market demands. However, Bitfarms has consistently refuted Riot’s claims, asserting that its board and management have been taking independent actions to strengthen the company’s financial position and growth prospects.
Ongoing Conflict and Public Attacks
The public dispute between Bitfarms and Riot has escalated, with Riot resorting to what Bitfarms describes as “public attacks” to pressure the company into accepting a deal. Bitfarms remains steadfast in its commitment to enhancing shareholder value and pursuing its strategic goals. The company is focused on diversification and expansion in the US market, leveraging its proposed acquisition of Stronghold Digital to increase its energy capacity and strengthen its position in the industry.
In conclusion, Bitfarms’ detailed rebuttal to Riot Platforms’ claims sheds light on the ongoing tensions between the two companies and highlights Bitfarms’ commitment to its shareholders and strategic growth objectives. As the conflict continues to unfold, it remains to be seen how the two companies will resolve their differences and move forward in the competitive cryptocurrency mining sector.