Bitfarms, a prominent Bitcoin mining company, recently issued a statement in response to what it deemed as misleading claims made by its rival, Riot Platforms. The ongoing tensions between the two companies stem from Riot’s amended acquisition proposal, which Bitfarms believes is aimed at acquiring the company at a discounted price rather than focusing on corporate governance.
Bitfarms emphasized in its press release on Sept. 4 that Riot’s proposal is primarily beneficial to Riot shareholders rather than Bitfarms’ own investors. The company expressed concerns about Riot’s refusal to engage in meaningful discussions, including declining to sign a non-disclosure agreement or submit a revised proposal, which Bitfarms claims have undermined the interests of its shareholders.
Addressing Riot’s criticism of its plan to acquire Stronghold Digital, Bitfarms clarified that recent leadership changes were made independently and were aimed at strengthening shareholder value. The company highlighted the qualifications of its leadership team and questioned the potential value that Riot’s board nominees could bring.
Bitfarms also outlined its strategy to diversify energy access and expand its presence in the US through the proposed acquisition of Stronghold. This acquisition could potentially add up to 307 megawatts of power capacity, aligning with Bitfarms’ goal to increase its energy portfolio to over 950 MW by 2025, with a significant portion of that capacity based in the US.
The company reassured shareholders that it would review and respond to Riot’s amended requisition proposal in due course, emphasizing its commitment to enhancing shareholder value in both the short and long term.
The dispute between Bitfarms and Riot began earlier this year when Riot first made an unsolicited offer to acquire Bitfarms, which was rejected by Bitfarms due to concerns about undervaluation. Riot continued its pursuit by pushing for changes in Bitfarms’ corporate governance and nominating its own board candidates, leading to a public back-and-forth between the two companies.
Bitfarms has consistently defended its independent actions to strengthen its financial position and growth prospects, refuting Riot’s claims of the need for leadership and strategic changes. The escalating tensions have led to what Bitfarms describes as “public attacks” from Riot in an attempt to pressure the company into accepting a deal.