Riot Platforms, a bitcoin mining company, has increased its stake in rival Bitfarms to 14% by acquiring an additional 1,432,063 shares for around $3.87 million.[1] This move is part of Riot's ongoing hostile takeover attempt of Bitfarms, after its initial $950 million acquisition bid was rejected last month.[1][3]

Riot's CEO Jason Les criticized Bitfarms for adopting a "poison pill" strategy to block the takeover, calling it "shareholder unfriendly" and below the customary 20% threshold.[1][3] The poison pill would dilute Riot's stake if it acquires over 15% of Bitfarms' shares between June 20 and September 10.[1][5]

Riot now intends to call a special meeting of Bitfarms' shareholders to nominate independent directors to the board, aiming to address what it sees as "serious corporate governance issues" at Bitfarms.[1][3] The clash highlights growing concerns over governance and shareholder rights in the volatile crypto industry.[4]

Despite the tensions, Bitfarms' stock rose 15% after announcing plans to develop a large-scale mining site in the US, targeting a hash rate exceeding 35 EH/s by 2025.[1] Riot has a significantly larger market cap of $3.17 billion compared to Bitfarms' $1 billion.[1]

Sources [1] Riot Platforms raises Bitfarms stake to 14%, buys another $3.87 million worth of shares https://www.theblock.co/post/300098/riot-platforms-raises-bitfarms-stake?utm_source=rss&utm_medium=rss [2] Riot Platforms Acquires 12% Stake in Rival Bitfarms - USNews.com https://www.usnews.com/news/technology/articles/2024-06-05/riot-platforms-acquires-12-stake-in-rival-bitfarms [3] Riot Platforms CEO hits back at 'poison pill' plan to block Bitfarms ... https://www.theblock.co/post/299792/riot-platforms-ceo-hits-back-at-poison-pill-plan-to-block-bitfarms-takeover [4] Riot Platforms Clashes With Bitfarms Over Takeover Strategy https://finimize.com/content/riot-platforms-clashes-with-bitfarms-over-takeover-strategy [5] Bitfarms tries to block Riot Platforms hostile takeover with 'poison pill ... https://www.theblock.co/post/299299/bitfarms-tries-to-block-riot-platforms-hostile-takeover-with-poison-pill-approach [6] Riot Platforms, Inc. Reports Beneficial Ownership of 12% in Bitfarms ... https://www.riotplatforms.com/riot-platforms-inc-reports-beneficial-ownership-of-12-in-bitfarms-ltd/