Bitcoin mining firm Riot Platforms has proposed to acquire
its rival Bitfarms for US$2.30 per Bitfarms common share. This could reportedly make Riot the largest publicly listed Bitcoin miner globally.
The deal offers Bitfarms’ shareholders a substantial premium despite
the volatile cryptocurrency market.
According to the press release, Riot’s proposal offers a 24% premium to Bitfarms’
one-month volume-weighted average share price. With approximately US$950
million in total equity value, the acquisition aims to enhance Bitfarms’
financial strength and promises investors better returns from future growth
opportunities. Riot mentioned that it had acquired a 9.25% stake in Bitfarms
and is now the largest shareholder in the company.
Additionally, the merger aims to create a Bitcoin
mining capacity of approximately 1 GW of current power capacity and 19.6 EH/s
of current self-mining capacity. By the end of the year, the combined company
is projected to reach up to 1.5 GW of power capacity and 52 EH/s of self-mining
capacity, reportedly surpassing any other publicly listed Bitcoin mining
company.
Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World’s Largest Publicly Listed Bitcoin Miner.
Read the full press release here: https://t.co/SnBijrL3i7
For disclaimers, please visit: https://t.co/6RQFSK9MKb.
— Riot Platforms, Inc. (@RiotPlatforms) May 28, 2024
The proposal was initially presented to Bitfarms on
April 22, but the Board rejected it. Riot has partly blamed the feedback on the
change in Bitfarms’ management after the exit of its CEO. The Nasdaq-listed
firm has opted to approach Bitfarms’ Shareholders to present the acquisition
proposal.
Expansion Across North and South America
The combination will result in a company operating 15
facilities across the United States, Canada, Paraguay, and Argentina. This
network, with up to 2.2 GW of total power capacity when fully developed, could
position Riot for continued expansion and long-term growth in favorable energy
environments.
According to the two entities, the proposed
transaction, unanimously approved by Riot’s Board of Directors, offers Bitfarms
shareholders a mix of cash and Riot common stock. Riot has over US$700 million
in cash on hand and access to public equity markets.
Bitcoin mining firm Riot Platforms has proposed to acquire
its rival Bitfarms for US$2.30 per Bitfarms common share. This could reportedly make Riot the largest publicly listed Bitcoin miner globally.
The deal offers Bitfarms’ shareholders a substantial premium despite
the volatile cryptocurrency market.
According to the press release, Riot’s proposal offers a 24% premium to Bitfarms’
one-month volume-weighted average share price. With approximately US$950
million in total equity value, the acquisition aims to enhance Bitfarms’
financial strength and promises investors better returns from future growth
opportunities. Riot mentioned that it had acquired a 9.25% stake in Bitfarms
and is now the largest shareholder in the company.
Additionally, the merger aims to create a Bitcoin
mining capacity of approximately 1 GW of current power capacity and 19.6 EH/s
of current self-mining capacity. By the end of the year, the combined company
is projected to reach up to 1.5 GW of power capacity and 52 EH/s of self-mining
capacity, reportedly surpassing any other publicly listed Bitcoin mining
company.
Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World’s Largest Publicly Listed Bitcoin Miner.
Read the full press release here: https://t.co/SnBijrL3i7
For disclaimers, please visit: https://t.co/6RQFSK9MKb.
— Riot Platforms, Inc. (@RiotPlatforms) May 28, 2024
The proposal was initially presented to Bitfarms on
April 22, but the Board rejected it. Riot has partly blamed the feedback on the
change in Bitfarms’ management after the exit of its CEO. The Nasdaq-listed
firm has opted to approach Bitfarms’ Shareholders to present the acquisition
proposal.
Expansion Across North and South America
The combination will result in a company operating 15
facilities across the United States, Canada, Paraguay, and Argentina. This
network, with up to 2.2 GW of total power capacity when fully developed, could
position Riot for continued expansion and long-term growth in favorable energy
environments.
According to the two entities, the proposed
transaction, unanimously approved by Riot’s Board of Directors, offers Bitfarms
shareholders a mix of cash and Riot common stock. Riot has over US$700 million
in cash on hand and access to public equity markets.
