Riot Platform Strengthens Hold on Bitfarms, Acquiring $3.87 Million Shares

IconCryptoNewsTerminal Staff14 Jun, 2024

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Riot Platform Strengthens Hold on Bitfarms, Acquiring $3.87 Million Shares

Riot Platform Secures Additional Bitfarms Stake Riot Platform, a prominent Bitcoin mining company, has acquired an additional $3.87 million worth of shares in Bitfarms, a move that solidifies its position as a major shareholder. This purchase brings Riot Platform's ownership stake in Bitfarms to 14%. Riot's Acquisition Ambitions The latest purchase follows Riot Platform's initial acquisition of a 12% stake in Bitfarms on June 6th. Subsequently, Riot made an offer to acquire all of Bitfarms' outstanding shares for $950 million. However, Bitfarms rejected the offer, citing that it did not align with the best interests of its shareholders. Bitfarms' Resistance Bitfarms has expressed its determination to resist any dilution of its shares, stating that it will take action if Riot Platform acquires more than 15% of its stock. The company has not elaborated on the specific measures it plans to implement. Industry Implications The acquisition of Bitfarms shares by Riot Platform reflects the ongoing consolidation within the Bitcoin mining sector. As the industry matures, larger companies are seeking to gain greater control over hash rate and operations, leading to strategic acquisitions and partnerships.

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