Bitfarms rejects Riot’s unwanted acquisition offer.
Bitfarms announced on May 29 that it rejected Riot Platform’s unsolicited acquisition offer on the grounds that it undervalued the company.
The offer, filed on April 22, offered a mix of cash and Riot common stock at $2.30 per common share, equivalent to $950 million.
Bitfarms’ special committee of independent directors reviewed the proposal and concluded that it underestimated the company’s growth prospects.
arguement
The offer comes at a complicated time for Bitfarms, which is conducting a CEO search following the sudden dismissal of former CEO Geoffrey Morphy on May 13.
Morphy, who joined Bitfarms in 2020 and became CEO in 2022, filed a lawsuit against the company, seeking $27 million in damages for breach of contract and wrongful termination.
The legal dispute has added uncertainty to the management transition, but Bitfarms chairman and co-founder Nicolas Bonta has taken over as interim president and CEO until a permanent successor is found.
Riot Platforms said it made the unsolicited offer due to concerns its board was not acting in the best interests of shareholders, amid allegations made in its former CEO’s lawsuit.
additional interest
Despite the leadership turmoil, Bitfarms said it has attracted additional interest from other parties. Each stakeholder has entered into customary nondisclosure agreements, and the Special Committee is comprehensively reviewing strategic alternatives to maximize shareholder value.
According to the company, these alternatives could include continuing Bitfarms’ current business plan, a strategic business combination, or a sale of the company. The board added that it was committed to “maximizing value for all shareholders.”
Bitfarms emphasized that its CEO search is ongoing and that it continues to focus on expansion and fleet upgrades. The company aims to achieve a hashrate of 21EH/s and an efficiency of 21w/TH in 2024, which represents a significant increase in both growth and efficiency compared to its peers.
Bitfarms operates 12 Bitcoin mining facilities and has one under development across Canada, the United States, Paraguay, and Argentina.
