The company said in a statement that it had withdrawn its previous proposal to acquire Bitfarms for $2.30 per share.

A merciless battle. Bitcoin mining company Riot Platforms said on Monday (June 25) that it was withdrawing its takeover bid (takeover bid) for Bitfarms. Riot Platforms nevertheless managed to appoint three directors to the board of directors of its competitor.

Riot Platforms has already acquired 14.9% of the capital of Bitfarms and wants to continue to gain momentum to launch a takeover bid (public takeover offer) for the rest of the capital. The two companies have been fighting fiercely since Riot made an offer on April 22 to acquire Bitfarms for around $950 million. Unsolicited offer and rejected by the latter on June 12, which triggered tensions between the two companies.

“A proposal that undervalues ​​Bitfarms”

Bitfarms and its shareholders had notably considered “that the proposal significantly undervalued Bitfarms and was not in the best interests of shareholders”. It then quickly passed a plan to modify shareholder rights to self-administer a “poison pill”, a sort of poison pill, to make any operation more difficult on its capital as well as to prevent any attempt at takeover. hostile.

In a press release published on June 24 on its website, Riot Platforms announced that it had “convened a special meeting of Bitfarms shareholders to reconstitute its board of directors.” Riot believes “that Bitfarms’ executives bear direct responsibility for poor corporate governance practices and its continued failure to realize Bitfarms’ full potential.”

This takeover attempt is widely followed on Wall Street. Bitfarms shares have already almost doubled in value over the past year, while Riot Platforms shares have lost nearly 15%.

Antoine Larigaudrie, with Sébastien Bordry


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