Riot Blockchain, a Bitcoin miner, has increased its stake in rival company Bitfarms by purchasing an additional 10 million shares, bringing its total stake to nearly 16%. This move comes after Bitfarms’ initial shareholder rights plan was nullified, allowing Riot to acquire more shares without facing equity dilution.
Despite an unsuccessful $950 million takeover bid in April, Riot has continued its acquisition strategy by purchasing more shares and pushing for a special shareholders’ meeting at Bitfarms. The company has criticized Bitfarms’ corporate governance and management turnover, claiming that the current board prioritizes personal interests over those of the company and its shareholders.
On the other hand, Bitfarms has stated that they are unaware of any pending takeover bid but are evaluating strategic options to protect their shareholders from potential acquisition attempts. They view Riot’s actions as an attempt to “opportunistically acquire” the company through creeping bids.
It will be interesting to see how this acquisition battle unfolds between Riot Blockchain and Bitfarms, as both companies continue to make strategic moves to gain control and protect their interests in the market. Investors and stakeholders will be closely watching the developments to see the outcome of this ongoing rivalry in the cryptocurrency mining industry.