Bitcoin
Bitcoin Miner Riot Platforms (RIOT) Abandons Bitfarms (BITF) Acquisition, Seeks to Revise Board
Bitcoin mining company Riot Platforms (RIOT) has dropped its proposal to buy Bitfarms (BITF) pairs and is looking to revamp the board before engaging in further takeover attempts.
“Over the course of more than a year of attempted constructive engagement with the Bitfarms Board regarding a potential combination of Bitfarms and Riot, it has become apparent to Riot that good faith negotiations simply will not be possible until there is a real change at Bitfarms. meeting room,” Riot said in a Press release on Monday.
The mining company is nominating John Delaney, Amy Freedman and Ralph Goehring to replace current Bitfarms board members.
Riot, which has become Bitfarms’ largest shareholder and owns 14.9% of the company, has called a special meeting to remove Bitfarms’ interim president and CEO Nicolas Bonta, director Andrés Finkielsztain and anyone who could fill the vacancy created. due to the resignation of the co-founder. Emiliano Grodzki. Riot will also seek to remove any additional directors appointed by the current Bitfarms board starting today.
The hostile takeover bid became public last month after Riot offered to buy Bitfarms for $2.30 per share, an approach that was quickly rejected. Riot continued to buy shares in its rival to put pressure on the board to get involved with the mining company. BItfarms later implemented a shareholder rights plan or “poison pill” to prevent Riot from purchasing the company.
Riot said it will continue to pursue an acquisition because a combination would create the world’s largest publicly listed bitcoin miner, which is “well positioned for long-term growth.”
Bitfarms shares fell more than 6% on Monday, although the shares are trading above their tender offer of $2.30 per share, implying that traders still view BITF as a potential trading target. acquisition. Riot shares fell slightly as bitcoin fell 3% in the last 24 hours.