Bitfarms Addresses Riot Platform’s ‘Unsolicited Proposal’

• Bitfarms has addressed Riot Platform’s acquisition proposal.
• The company termed the proposal “unsolicited.”
• Bitfarms highlighted several alternative strategies it might pursue.

Bitcoin mining firm Bitfarms issued a statement on Wednesday, highlighting reasons why it rejected an acquisition proposal from rival company Riot Platform.

The response comes after Riot Platform announced on May 28 that it had acquired ownership of 3,002,350 common shares of Bitfarms, representing about 0.75% of the company’s issued and outstanding common Shares. Following the acquisition, Riot effectively assumed control of 10% of Bitfarms’ issued and outstanding common shares.

Per Riot’s statement , the latest acquisition followed the company’s futile effort to engage with the board of directors of Bitfarms regarding a non-binding proposal to acquire the company’s outstanding shares for a consideration of $2.30 per common share.

Bitfarms Rejects the Acquisition Proposal

In a press release dated May 29, Bitfarms confirmed that it had received Riot’s proposal on April 22 to acquire 100% of its common shares at $2.30 per common share consisting of cash and Riot common stock.

“A Special Committee of the Board comprised solely of independent directors carefully considered the proposal and determined it significantly undervalues the Company and its growth prospects,” the statement read.

Bitfarms implied that Riot refused to respond to its customary confidentiality and non-solicitation protection requests before it proceeded to make an unsolicited proposal on May 28. It said it is currently exploring strategic alternatives to achieve maximum shareholder value.

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“These alternatives could include, among others, continuing to execute on the Company’s business plan, a strategic business combination or other strategic transaction, or a sale of the Company,” Bitfarms stated.

In the meantime, Bitfarms stated that it is still hunting for a CEO as it continues to execute its expansion and transformative fleet upgrade.

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