close
close

Riot Platform, Bitfarm’s largest shareholder of the proposed acquisition

Posted on by darion

The May 28 edition reveals more than just the takeover proposal presented Bitfarms but also highlights the purpose, impact, conditions and criteria of the acquisition. During this period Riot platform gathered A 9.25% shares in Bitfarms and became the largest shareholder involved in the organization’s decision-making process.

Benjamin Yi, the executive chairman shared his optimism about the combined organization, stating: “Combination Bitfarms and Riot would create the world’s leading and largest publicly traded Bitcoin miner, with a geographically diversified business well positioned for long-term growth.”

In addition, Jason Les, CEO With Riot platform, took to his account to share details of the proposal and further progress in the acquisition process in the form of a thread in his announcement post.

Attachments to the proposal

The proposed plan presents a 24% bonus to Bitfarms the one-month volume-weighted average share price as of May 24, 2024 will carry a 20% premium to Bitfarms share price on April 19, 2024, as this was the last day before the submission of the original proposal Bitfarms from Riot platforms. The current proposal will cost approximately $950 million Riot platforms in the total value of equity capital.

Proposal considerations have been designed to ensure that in the combined organization Bitfarms shareholders will hold 17% of the shares in the company.

How did Bitfars react to this proposal?

Following the initial proposal submitted on April 22, 2024 Bitfarms Management Board he rejected it without further discussion Riot Platforms Ltd.

At the same time, Bitfarms also ceased operations CEO, Murphyapparently and Nicolas Bonta, who serves as interim president and CEO until the board selects a new CEO.

The RIOT officials believes that some directors have not acted in the best interests of shareholders, as reflected in the recent change in management. Therefore, Riot platforms decided to present the proposal directly to its shareholders.

The meeting with shareholders is scheduled after the upcoming Ordinary General Meeting and Extraordinary Meeting of the Company Bitfarmswhich is scheduled for May 31. The meeting will discuss the addition of new, well-qualified, independent directors to the Bitfarms Board.

Objectives and implications of the combined organization:

– It will become the largest Bitcoin miner in the world. The acquisition will lead to the creation of a vertically integrated Bitcoin mining company by the end of the year with a current capacity of 1 GW and a mining capacity of 19.6 EH/s. Riot is confident in the synergies and expects them to deliver strategic and financial growth for shareholders of both companies.
– This will enable geographic diversification of mining facilities and promote long-term growth and expansion.
– The joint organization will benefit from the strong financial position of Riot platforms.

Impact on Riot Platforms and Bitfarm share prices

Riot platform (RIOT) saw its share price decline slightly on an uptrend of 0.29%, or $0.03 in absolute terms, leading to a share price of $10.34 at the time of writing. If the meeting is scheduled for May 31 and yields fruitful results on the takeover proposal, it will increase prices. Bitfarms the positive shareholder reaction to news of the proposal reflects positive prospects for the takeover and the company’s future. The BITF since the last day of trading, prices have increased by 9.41%, bringing the price to $2.21 at press time.