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Riot Requests Three Bitfarms Board Members, Claims 14.9% Company Stake 

Riot Platforms Inc. has made the audacious decision to run for three seats on Bitfarms Ltd.’s board of directors, a move that has the potential to drastically alter the dynamics of the cryptocurrency mining sector. Riot Platforms Inc., has been rapidly growing its presence.

This approach is being carried out by the corporation, as seen by its most recent acquisition of a sizable share in Bitfarms. Riot’s acquisition of a 14.9% interest is perceived as a calculated move to capitalize on Bitfarms’ well-established infrastructure and renewable energy sources while simultaneously diversifying its assets. 

Riot CEO Jason Les highlighted in a statement the advantages of collaborative leadership and possible synergies between the two companies. In his statement, the CEO said “We think that having a representative on the board will enable us to collaborate closely with Bitfarms to promote growth, improve operational effectiveness, and harmonize our strategic goals.”

Riot Shares Trading Volume Increase Amid Announcement of Bitfarms Acquisition 

According to a Bitfarms representative, the business is considering Riot’s proposition and will decide what’s best for its shareholders. Following the announcement, trading volume in both businesses’ shares increased as analysts discussed the possible ramifications.

Riot is putting itself in a position to directly impact Bitfarms’ strategic direction by requesting board involvement.  Not every response, though, has been favorable. A few investors are apprehensive about the possibility of conflicts of interest and the difficulties associated with blending diverse business cultures.

Riot might spearhead several important Bitfarms strategic initiatives if they are successful in gaining board seats. It is believed that Riot’s influence may also result in stronger risk management procedures and a stronger focus on sustainability by utilizing Bitfarms’ renewable energy resources.

Riot Statement Says It Has 14.9% Stake in Bitfarms 

Financial advisor Mark Ellis cautioned that “Riot’s aggressive approach could backfire if not managed carefully.” A statement from Riot on June 24th has it that the company has almost a 14.9% stake in the mining Bitfarms after it announced its plans preventing it from purchasing over 15% of the company stock.

Instead of continuing with the plan of acquiring Bitfarms shares, Riot is working on replacing three board members and dropping an extra director that’s appointed after the official announcement.

In its statement, Riot said it is now clear that it is not possible to get the present board in Bitfarms to negotiate with them.

It says that the company has formally informed the board at Bitfarms that it has officially withdrawn the former request for the acquisition of all its common shares at $2.30 per share. The idea of totally changing Bitfarm’s board members is the most recent development in Riot’s list for the complete acquisition of Bitfarms. 

Riot Claims Bitfarms Board Members Not Interested in Negotiations 

Bitfarms is reported to plan on replacing its board with three new persons outside Bitfarms and Riot. Among the selected successors are Ralph Goehring, John Delaney, and Amy Freedman. The price of Bitfarm on NASDAQ has risen by over 36% in 30 days amid the plan of takeover but further dropped by 6% in the last 24 hours.

Riot claims that the board at Bitfarms has proven uninterested in engaging in constructive negotiation concerning the new takeover, saying that they have eliminated the CEO succession procedure in the company. Geoffrey Morphy, the former Bitfarms CEO stepped down after a legal battle against the company.

Nicolas Bonta was later appointed to the acting CEO capacity in the interim, and president after the Morphy development. However, Bonta could also be dropped as one of the three members of the company’s board after a successful negotiation with the shareholders. 

Riot in May 2024 made the first move to buy Bitfarms for $950 million and has kicked off the process of increasing the stake. This idea continued until the company (Bitfarms) activated its resistance against a hostile takeover, capping holdings at 15%.

Written by
Don Blankenship

Don Blankenship, a crypto writing maestro, captivates with his astute analyses of blockchain phenomena. Synthesizing the dynamic world of digital currencies into insightful prose, Don's articles are a beacon for enthusiasts and professionals. His expertise establishes him as a definitive voice in crypto journalism.

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