Riot, a major player in the Bitcoin mining industry, has announced an unsolicited offer to acquire Bitfarms. We are on the verge of seeing the world's largest publicly traded mining company.
This move comes after Riot revealed that Bitfarms rejected its private proposal made last month. Riot has now accumulated a 9.25% stake in Bitfarms, making it the company's largest shareholder.
Riot is offering $2.30 per share for Bitfarms.
Following the news, Bitfarms' shares surged nearly 8%, currently trading at $2.18. Riot's executive chairman, Benjamin Yi, expressed disappointment over Bitfarms' board rejecting their proposal without substantive dialogue.
Yi emphasized that Riot's offer presents a more attractive alternative for Bitfarms' shareholders compared to the company's current trajectory. Riot's CEO, Jason Less, criticized Bitfarms' management, particularly after the recent dismissal of Bitfarms CEO Geoffrey Morphy.
Less raised concerns about the actions of Bitfarms' founders, Nicolas Bonta and Emiliano Grodzki, suggesting they might not be acting in the best interests of all shareholders. Morphy was fired this month after filing a lawsuit against Bitfarms, claiming $27 million in damages for breach of contract.
Riot's move signifies a strategic effort to consolidate power in the Bitcoin mining sector. The outcome of this takeover bid will likely have significant implications for the industry's future landscape. Bitfarms has not responded to inquiries about the takeover bid or Morphy's lawsuit.
Riot's aggressive expansion underscores the competitive nature of the Bitcoin mining industry and highlights the lengths to which companies will go to secure dominance. Investors will be closely watching how this high-stakes drama unfolds.