Riot Platforms has recently made a significant investment in Bitfarms by purchasing an additional 1,432,063 shares, totaling approximately $3.87 million. With this acquisition, Riot now holds around 14% of Bitfarms, with a total of 57.62 million shares in its possession.
This move is part of Riot’s ongoing attempt to take over Bitfarms, following a bid of $950 million made last month. After securing a 9.25% stake in Bitfarms in May, Riot has been steadily increasing its ownership through additional share purchases.
In response to Riot’s aggressive acquisition strategy, Bitfarms has implemented a “poison pill” defense mechanism to deter the takeover. This tactic aims to make Bitfarms less attractive to potential acquirers and reduce Riot’s ownership stake by issuing new shares if any entity acquires more than 15% of the company’s shares.
Despite these defensive tactics, Bitfarms’ stock saw a 15% increase after announcing that its 2025 hash rate is projected to exceed 35 EH/s with the development of a new mining site in the United States.
Riot Platforms CEO, Jason Les, has criticized Bitfarms’ defensive measures, accusing the company of neglecting shareholder interests. Les called out the Bitfarms Board for implementing the poison pill strategy and highlighted the recent removal of company co-founder Emiliano Grodzki by shareholders as evidence of poor corporate governance.
In light of these issues, Riot Platforms plans to request a special meeting of Bitfarms shareholders to nominate independent directors to the board and address the governance concerns raised by Les.
Investors following this situation closely should consider the implications of Riot Platforms’ increased stake in Bitfarms and the potential impact on the company’s future direction and governance structure. As the battle for control continues between Riot Platforms and Bitfarms, shareholders will need to stay informed and assess the evolving dynamics of this takeover attempt.