Originally published on: August 14, 2024
Riot Platforms Inc., a major player in the world of Bitcoin mining, has made headlines by increasing its stake in Bitfarms Ltd. The company recently disclosed that it acquired an additional 1 million Bitfarms common shares through open market purchases, totaling approximately $2.28 million.
This move has raised Riot’s total holdings in Bitfarms to 85.3 million shares, up from the previous 84.3 million, giving Riot a substantial ownership stake of 18.9% in Bitfarms. This increased influence over the Canadian mining firm demonstrates Riot’s commitment to its investment strategy and long-term goals in the crypto market.
The acquisition comes amidst ongoing tensions between Riot and Bitfarms, following Riot’s unsuccessful $950 million acquisition offer to Bitfarms earlier this year. Despite facing setbacks and regulatory challenges, Riot has continued to assert its position by requisitioning a special shareholder meeting to instigate changes in Bitfarms’ board composition.
In a surprising turn of events, Bitfarms announced the immediate departure of co-founder and chair Nicolas Bonta, a strategic move that could potentially ease the ongoing boardroom battle between the two companies. Riot, however, remains vigilant and has hinted at further actions to be taken regarding its investment in Bitfarms.
Apart from its dealings with Bitfarms, Riot has expanded its portfolio through the acquisition of Block Mining in Kentucky for a whopping $92.5 million. This acquisition not only boosts Riot’s hashing power but also extends its reach into new energy markets, diversifying its geographical presence beyond Texas.
With key developments in the crypto mining industry and Riot’s strategic maneuvers, it’s clear that the company is positioning itself for growth and success in the ever-evolving world of cryptocurrencies. Subscribe to our Crypto Biz newsletter for more insights and updates on the latest trends in blockchain and crypto business.