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Bitcoin mining giant Riot has announced plans to acquire small miner Bitfarms through a hostile takeover, which, if successful, would transform the company into the world’s largest publicly traded miner. Will be.
american miner presentation On Tuesday, it said it had made an undisclosed offer last month but that Bitfarms had rejected it.
Riot said today it has amassed a 9.25% stake in Bitfarms, making it the miner’s largest shareholder and is currently offering to buy it for $2.30 per share.
Bitfarms stock (NASDAQ: BITF) has been in the news and is up nearly 8% today, currently trading at $2.18 a pop.
“We were disappointed to learn that the Bitfarms board rejected our compelling proposal without any substantive dialogue with us,” Riot Chairman Benjamin Lee said in a statement.
“While we have long admired Bitfarms’ business and management team, we are confident that Bitfarms’ shareholders will agree that this proposal presents a much more attractive alternative to Bitfarms than a standalone trajectory,” he added.
Riot CEO Jason Less said Bitfarms had mismanaged its business following the recent dismissal of Bitfarms CEO Geoffrey Morphy.
“We are deeply concerned that the founders of the Bitfarms board, Nicolas Bonta and Emiliano Grodzki, may not be acting in the best interests of all Bitfarms shareholders,” he added. Morphy’s abrupt termination and the fired executive’s lawsuit “are serious questions.”
Bitfarms was fired this month after Morphy filed a lawsuit against the miner seeking $27 million in damages for breach of contract. The company declined to comment. decryptionThis is your question.
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