Bitcoin miner Bitfarms issued an announcement addressing what it known as deceptive claims by rival Riot Platforms amid ongoing tensions over the latter’s amended acquisition proposal.
Within the Sept. 4 press launch, Bitfarms emphasised that Riot’s proposal isn’t about company governance however reasonably an try and purchase it at a reduced value. The agency additional acknowledged that the transfer would primarily profit Riot shareholders reasonably than Bitfarms’ personal buyers.
The assertion comes after Riot criticized Bitfarms’ plan to amass Stronghold Digital in an open letter to shareholders on Sept. 3.
Modifications made independently
Bitfarms claimed that Riot has refused to have interaction in significant discussions, together with declining to signal a normal non-disclosure settlement or submit a revised proposal. As a substitute, Riot has taken actions that Bitfarms claims have undermined the pursuits of its shareholders.
The agency additionally clarified that the latest management adjustments have been made “independently of Riot’s involvement” and applied to strengthen shareholder worth. It additional emphasised the {qualifications} of its management group and questioned the potential worth that Riot’s board nominees may provide.
Bitfarms additionally highlighted that its proposed acquisition of Stronghold as a part of its ongoing technique to diversify power entry and develop its presence within the US. The acquisition, which may add as much as 307 megawatts (MW) of energy capability, aligns with Bitfarms’ aim of rising its power portfolio to over 950 MW by the tip of 2025, with practically half of that capability based mostly within the US.
Bitfarms acknowledged that the Board would overview and reply to Riot’s amended requisition proposal sooner or later however suggested shareholders that no speedy motion was required. The corporate reiterated its dedication to enhancing shareholder worth in each the quick and long run.
Hostile takeover
The dispute between the 2 companies dates started earlier this yr when Riot first made an unsolicited provide to amass Bitfarms. Nevertheless, the latter rejected this overture, citing issues concerning the phrases of the acquisition, which it believed undervalued its enterprise.
Riot, undeterred, continued its pursuit and started pushing for adjustments in Bitfarms’ company governance, suggesting that enhancements in management and strategic course have been mandatory. It additionally nominated its personal slate of candidates for Bitfarms’ board, arguing that contemporary views have been wanted to align the corporate’s technique with market calls for.
Nevertheless, Bitfarms has persistently refuted Riot’s claims, asserting that its board and administration have been taking unbiased actions to strengthen the corporate’s monetary place and development prospects.
This public back-and-forth has escalated, with Riot resorting to what Bitfarms describes as “public attacks” to strain the agency into accepting a deal.
