- Bitfarms (TSX:BITF), a global Bitcoin mining stock, has rejected an acquisition proposal from competitor Riot Platforms (NDAQ:RIOT) to create the world’s largest publicly listed Bitcoin miner, citing the low-ball nature of the offer
- The proposal has led to other unsolicited offers Bitfarms is currently considering
- Riot Platforms stock has given back 14.05 per cent year-over-year, but has gained 219.14 per cent since 2019
- Bitfarms stock has added 85.80 per cent year-over-year, but only 38.07 per cent since 2019
Bitfarms (TSX:BITF), a global Bitcoin mining stock, has rejected an acquisition proposal from competitor Riot Platforms (NDAQ:RIOT) to create the world’s largest publicly listed Bitcoin miner, citing the low-ball nature of the offer.
A special committee of Bitfarms independent directors reviewed the proposal and determined that it “significantly undervalues the company and its growth prospects,” according to Wednesday’s news release, pricing it at US$2.30 per share or US$950 million. The committee’s deliberations may have progressed further, if not for Riot failing to respond to a request for customary confidentiality and non-solicitation protections.
Bitfarms has since received additional unsolicited expressions of interest – each under non-disclosure agreements – which the committee is reviewing “to ensure it achieves maximum shareholder value,” whether that means selling the company, a strategic transaction or business combination, or returning to business as usual.
About Riot Platforms
Riot is a Bitcoin mining and digital infrastructure company focused on vertical integration. The company operates in Texas, where it benefits from low-cost power and more than US$1.2 billion in liquidity (about half cash and half Bitcoin) to increase its mining capacity from about 30 EH/s at present to 100 EH/s towards the end of this decade. Riot held 8,490 Bitcoins and mined about 15 Bitcoins per day in Q1 2024.
Riot Platforms stock (NDAQ:RIOT) last traded at US$10.34 per share. The stock has given back 14.05 per cent year-over-year, but has gained 219.14 per cent since 2019.
About Bitfarms
Bitfarms, established in 2017, is a global Bitcoin mining company that operates 12 facilities across Canada, the United States, Paraguay and Argentina. The company held 830 Bitcoins in treasury and averaged production of 10.4 Bitcoins per day in Q1 2024, and is on track to expand its mining capacity to 21 EH/s later this year.
Bitfarms Ltd. stock (TSX:BITF) last traded at C$3.01 per share. The stock has added 85.80 per cent year-over-year, but only 38.07 per cent since 2019.
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(Top photo of Riot Platforms’ Corsicana Bitcoin mining facility in Texas: Riot Platforms)