Bitfarms Addresses Riot's Misleading Claims Amid Acquisition Talks
Peter Zhang Sep 05, 2024 02:53
Bitfarms responds to Riot's claims, emphasizing its commitment to shareholder value and strategic acquisitions.
Bitfarms Ltd. (NASDAQ/TSX: BITF), a prominent Bitcoin (BTC) data center operator, has issued a statement addressing what it describes as misleading claims made by Riot Platforms, Inc. (NASDAQ: RIOT). The statement comes amid ongoing acquisition discussions, according to GlobeNewswire.
Bitfarms' Position on Riot's Claims
Bitfarms clarified that the upcoming special meeting is not about corporate governance, as Riot has suggested, but is instead an attempt by Riot to acquire Bitfarms at a discounted price. Bitfarms accused Riot of refusing to engage constructively, including declining to enter a non-disclosure agreement or provide a revised proposal for consideration. Bitfarms stated that Riot's public actions are aimed at benefiting Riot shareholders at the expense of Bitfarms shareholders.
Recent Leadership and Strategic Moves
Bitfarms emphasized that its recent board and leadership changes were made independently of Riot’s influence, aiming to enhance shareholder value. The company highlighted its team’s expertise and strategic planning capabilities, contrasting this with Riot's proposed board nominees, whose potential contributions remain unclear.
Strategic Acquisition of Stronghold
Bitfarms also addressed its proposed acquisition of Stronghold, aimed at diversifying its energy portfolio towards the U.S. The transaction is expected to add up to 307 MW of power capacity, positioning Bitfarms to increase its energy portfolio to over 950 MW by the end of 2025, with nearly 50% located in the U.S. This move aligns with Bitfarms' strategy to leverage operational expertise and proprietary data analytics to optimize Stronghold’s sites.
Focus on Shareholder Value
The Bitfarms board and management team reiterated their commitment to enhancing shareholder value through strategic transactions and operational improvements. The company assured shareholders that no immediate action is required in response to Riot’s amended requisition proposal, which will be considered in due course.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global leader in vertically integrated Bitcoin data center operations. The company develops, owns, and operates mining facilities with in-house management and company-owned electrical engineering and installation services. With 12 operating data centers and two under development in Canada, the U.S., Paraguay, and Argentina, Bitfarms is committed to using sustainable energy sources, predominantly hydro-electric power.
For more information, visit GlobeNewswire.
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