{"id":31484,"date":"2024-05-28T20:18:29","date_gmt":"2024-05-28T20:18:29","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/riot-platforms-wants-to-buy-bitfarms-for-950-million\/"},"modified":"2024-05-28T20:18:29","modified_gmt":"2024-05-28T20:18:29","slug":"riot-platforms-wants-to-buy-bitfarms-for-950-million","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/riot-platforms-wants-to-buy-bitfarms-for-950-million\/","title":{"rendered":"Riot Platforms wants to buy Bitfarms for $950 million"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"post-article-image  -mt-24  mb-8  lg:-mt-32  rounded  overflow-hidden\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/Riot-Platforms-wants-to-buy-Bitfarms-for-950-million-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/Riot-Platforms-wants-to-buy-Bitfarms-for-950-million-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/Riot-Platforms-wants-to-buy-Bitfarms-for-950-million-smartcrop-750x375.jpg\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2024\/05\/Riot-Platforms-wants-to-buy-Bitfarms-for-950-million-smartcrop-363x181.jpg\" type=\"image\/jpeg\"\/>\n<\/picture>                    <\/div>\n<ul>\n<li>Riot Platforms offers $950M to acquire Canadian Bitcoin miner Bitfarms.<\/li>\n<li>Bitfarms is facing leadership turmoil amid CEO Geoffrey Morphy\u2019s lawsuit.<\/li>\n<li>The merger would create largest publicly listed Bitcoin miner by capacity.<\/li>\n<\/ul>\n<p>Riot Platforms, a prominent <a href=\"https:\/\/coinjournal.net\/bitcoin\/what-is-bitcoin\/\">Bitcoin<\/a> miner and Bitfarms\u2019 largest shareholder, has made a hostile <a href=\"https:\/\/www.riotplatforms.com\/riot-proposes-to-acquire-bitfarms-for-us2-30-per-share-to-create-the-worlds-largest-publicly-listed-bitcoin-miner\/\">takeover offer<\/a> of $950 million for Bitfarms, a Canadian Bitcoin mining company.<\/p>\n<p>Riot\u2019s buyout offer represents a 24% premium over Bitfarms\u2019 one-month volume-weighted average share price as of May 24, 2024.<\/p>\n<h2>Shareholders to own 17% of Bitfarms after Riot\u2019s takeover<\/h2>\n<p>Riot Platforms, already the largest shareholder in Bitfarms with a 9.25% stake, had initially approached Bitfarms\u2019 board with a private offer on April 22.<\/p>\n<p>However, following the rejection of the offer, Riot has now taken the proposal public.<\/p>\n<p>The deal would involve a combination of cash and common stock, with Bitfarms shareholders standing to own approximately 17% of the merged entity.<\/p>\n<h2>Bitfarms\u2019 disputes with former CEO<\/h2>\n<p>The timing of Riot\u2019s bid coincides with a period of transition and turmoil within Bitfarms\u2019 management. The company has been grappling with the departure of its CEO, Geoffrey Morphy, who was dismissed in May amidst a legal dispute.<\/p>\n<p>Morphy\u2019s abrupt exit and subsequent lawsuit against Bitfarms for breach of contract and wrongful dismissal have raised questions about the company\u2019s leadership stability and governance practices.<\/p>\n<p>Riot Platforms has seized upon these developments to assert its case for the acquisition, alleging that certain directors, including Bitfarms\u2019 co-founders Nicolas Bonta and Emiliano Grodzki, may not be acting in the best interests of shareholders.<\/p>\n<p>Riot has pledged to push for the addition of new, independent directors to Bitfarms\u2019 board through a special shareholders meeting scheduled after the company\u2019s upcoming Annual General and Special Meeting on May 31.<\/p>\n<h2>Bitfarms\u2019 disappointing earnings compared to Riot Platforms<\/h2>\n<p>Notably, Bitfarms\u2019 disappointing earnings in 2023, despite a costly technical upgrade, have contributed to its vulnerability.<\/p>\n<p>Analysts had expected better performance post-Bitcoin halving, but Bitfarms\u2019 April earnings dropped 29% year-on-year.<\/p>\n<p>In contrast, Riot reported a 131% increase in net income in Q1 2024, reaching $211 million.<\/p>\n<p>If successful, the combined entity would emerge as the largest publicly listed Bitcoin miner, boasting significant self-mining and power capacities.<\/p>\n<p>Riot Platforms envisions leveraging this enhanced scale and operational efficiency to drive future value creation for shareholders and strengthen its competitive position in the burgeoning <a href=\"https:\/\/coinjournal.net\/cryptocurrencies\/mine\/\">cryptocurrency mining<\/a> industry.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/riot-platforms-wants-to-buy-bitfarms-for-950-million\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Riot Platforms offers $950M to acquire Canadian Bitcoin miner Bitfarms. Bitfarms is facing leadership turmoil amid CEO Geoffrey Morphy\u2019s lawsuit. The merger would create largest publicly listed Bitcoin miner by capacity. Riot Platforms, a prominent Bitcoin miner and Bitfarms\u2019 largest shareholder, [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":31485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/31484"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=31484"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/31484\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/31485"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=31484"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=31484"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=31484"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}