Bitcoin miner Bitfarms issued a press release addressing what it referred to 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 is just not about company governance however quite an try and purchase it at a reduced worth. The agency additional acknowledged that the transfer would primarily profit Riot shareholders quite than Bitfarms’ personal traders.
The assertion comes after Riot criticized Bitfarms’ plan to accumulate 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 regular 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 had been made “independently of Riot’s involvement” and carried out to strengthen shareholder worth. It additional emphasised the {qualifications} of its management workforce and questioned the potential worth that Riot’s board nominees might provide.
Bitfarms additionally highlighted that its proposed acquisition of Stronghold as a part of its ongoing technique to diversify power entry and broaden its presence within the US. The acquisition, which might 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 primarily based within the US.
Bitfarms acknowledged that the Board would evaluate and reply to Riot’s amended requisition proposal in the end however suggested shareholders that no fast 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 12 months when Riot first made an unsolicited provide to accumulate Bitfarms. Nonetheless, the latter rejected this overture, citing issues in regards to the phrases of the acquisition, which it believed undervalued its enterprise.
Riot, undeterred, continued its pursuit and commenced pushing for adjustments in Bitfarms’ company governance, suggesting that enhancements in management and strategic course had been obligatory. It additionally nominated its personal slate of candidates for Bitfarms’ board, arguing that contemporary views had been wanted to align the corporate’s technique with market calls for.
Nonetheless, Bitfarms has constantly refuted Riot’s claims, asserting that its board and administration have been taking impartial actions to strengthen the corporate’s monetary place and progress prospects.
This public back-and-forth has escalated, with Riot resorting to what Bitfarms describes as “public assaults” to stress the agency into accepting a deal.
