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 just isn’t about company governance however relatively an try to purchase it at a reduced worth. The agency additional said that the transfer would primarily profit Riot shareholders relatively than Bitfarms’ personal traders.
The assertion comes after Riot criticized Bitfarms’ plan to amass Stronghold Digital in an open letter to shareholders on Sept. 3.
Adjustments made independently
Bitfarms claimed that Riot has refused to interact in significant discussions, together with declining to signal an ordinary 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 modifications had been made “independently of Riot’s involvement” and carried out to strengthen shareholder worth. It additional emphasised the {qualifications} of its management group 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 increase its presence within the US. The acquisition, which might add as much as 307 megawatts (MW) of energy capability, aligns with Bitfarms’ objective of rising its power portfolio to over 950 MW by the tip of 2025, with almost half of that capability based mostly within the US.
Bitfarms said that the Board would overview and reply to Riot’s amended requisition proposal in the end however suggested shareholders that no rapid motion was required. The corporate reiterated its dedication to enhancing shareholder worth in each the brief 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 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 commenced pushing for modifications in Bitfarms’ company governance, suggesting that enhancements in management and strategic route had been crucial. It additionally nominated its personal slate of candidates for Bitfarms’ board, arguing that recent views had been wanted to align the corporate’s technique with market calls for.
Nevertheless, 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 development prospects.
This public back-and-forth has escalated, with Riot resorting to what Bitfarms describes as “public attacks” to stress the agency into accepting a deal.
