Riot Platforms has increased its acquisition efforts of Bitfarms by buying over 10 million more shares this month.
According to a filing with the US Securities and Exchange Commission on July 31, Riot, a Bitcoin (BTC) mining company, now owns 71.56 million Bitfarms shares, valued at $159.1 million.
This means Riot now holds a 15.9% stake in Bitfarms. According to the SEC filing, Riot purchased Bitfarms shares throughout the month of July, ranging from $2.48 to $2.84 per share.
Riot has an earnings call after trading hours on July 31. Its stock is currently trading at $10.61 per share.
The battle between Riot and Bitfarms
Riot announced a $950 million acquisition bid for Bitfarms in late May, claiming that Bitfarms’ founders were not acting in the best interests of all shareholders. They stated that their proposal was rejected by the Bitfarms board without substantive engagement.
Bitfarms responded by stating that Riot’s offer “significantly undervalues” its growth prospects.
Bitfarms then implemented a shareholder rights plan, often called a “poison pill,” to protect its strategic review process from hostile takeover attempts by Riot Platforms.
Riot owned 11.62% of Bitfarms’ shares at the time of the acquisition bid, Bitfarms’ board unanimously supported the poison pill plan to ensure their shareholders’ interests are safeguarded.
