As a seasoned crypto investor with a keen interest in Bitcoin mining companies, I find Riot Platforms’ move to acquire Bitfarms for $950 million intriguing. The potential acquisition would make Riot the largest publicly listed Bitcoin miner globally, which is an attractive proposition for investors like me.
Bitcoin mining behemoth Riot Platforms is set to take over its competitor Bitfarms for approximately $950 million. The move comes with allegations that Bitfarms’ founders have failed to put shareholders’ collective welfare first.
To expand its footprint as the leading publicly-traded Bitcoin mining company worldwide, Riot Platforms, a US corporation, has proposed purchasing all of Bitfarms’ shares for $2.3 each. This deal, valued at approximately $950 million, would mark the acquisition of Bitfarms in entirety by Riot Platforms.
As a crypto investor, I’d rephrase it like this: In a recent press announcement on May 28th, the Colorado-based cryptocurrency mining company disclosed that they were proposing a deal where Bitfarms’ shareholders could own up to around 17% of the merged entity by contributing cash and common stocks.
“Under this cash and stock deal, Bitfarms’ shareholders stand to gain a substantial bonus and instant financial reward. Additionally, they will have the opportunity to benefit from potential future value growth by becoming part of a financially robust and commercially successful company, guided by an experienced and accomplished leadership team.”
Riot Platforms
The proposal, which was initially presented in secrecy to Bitfarms’ board towards the end of April, was met with rejection by the board without entering into significant discussion with Riot, according to the firm. Additionally, Riot asserts that recent accusations in a 27 million dollar lawsuit filed against Bitfarms’ former CEO Geoffrey Morphy cast doubt on some directors’ dedication to representing all shareholders’ best interests.
As an analyst, I express my concern that the founders on Bitfarms’ Board, Nicolas Bonta and Emiliano Grodzki, might not have the best intentions for all the company’s shareholders.
Riot Platforms CEO Jason Les
Following the proposal to acquire Bitfarms, Riot intends to convene a post-May 31st shareholders’ meeting for the purpose of appointing fresh, unbiased directors to join the Bitfarms Board. This announcement led to a significant surge in BITF’s stock price, raising it nearly 10% to $2.21 as indicated by Google Finance data.
In mid-May, I found myself filing a lawsuit against Bitfarms in the Superior Court of Ontario. The reason for this legal action was a breach of contract on their part, as well as wrongful dismissal from my position at the company. To add to the grievances, I sought aggravated and punitive damages. This came after the firm had announced my departure in March with an overly positive spin, suggesting a “smooth” transition when in reality, things were far from it.
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2024-05-29 14:15