Riot Platforms Increases Stake in Bitfarms to 18.9%
Riot Platforms, Inc. (NASDAQ: RIOT) has announced an increase in its ownership stake in Bitfarms Ltd. (TSX: BITF), a leading cryptocurrency mining company. According to Riot Platforms, the company now holds 18.9% of Bitfarms' common shares.
Details of the Acquisition
On August 13, 2024, Riot acquired 1,000,000 common shares of Bitfarms through normal course purchases on the Nasdaq Stock Market and other open market trades. The shares were bought at an average price of approximately $2.28 per share, totaling around $2.28 million. This acquisition increased Riot's total holdings in Bitfarms to 85,293,054 common shares.
Implications for Bitfarms
Riot's increased stake in Bitfarms comes at a critical time as the company has also requisitioned a special meeting of Bitfarms' shareholders. At this meeting, Riot plans to propose the removal of certain directors from Bitfarms' Board and replace them with independent candidates. This move indicates Riot's intention to have a more significant influence on Bitfarms' strategic direction.
Future Plans and Market Conditions
Riot has stated its intention to continuously review its investment in Bitfarms, considering various factors such as market conditions, Bitfarms' financial position, and strategic opportunities. Depending on these factors, Riot may increase or decrease its stake in Bitfarms and might even propose a revised acquisition plan.
Regulatory Filings and Legal Disclaimers
Riot Platforms will file an Early Warning Report in accordance with Canadian securities laws, detailing its increased ownership and future intentions regarding Bitfarms. This report will be available on SEDAR+.
The company emphasized that this announcement should not be construed as an offer to buy or sell any securities. Riot Platforms' forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from those projected.
About Riot Platforms, Inc.
Riot Platforms, Inc. is a Bitcoin mining and digital infrastructure company based in Castle Rock, Colorado. The company aims to be a leading Bitcoin-driven infrastructure platform, with mining operations in Texas and engineering and fabrication operations in Denver, Colorado.
