Riot Platforms Acquires 14% Stake in Bitfarms Ltd.

Lawrence Jengar  Jun 14, 2024 17:50  UTC 09:50

0 Min Read

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.

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