Bitfarms Refutes Misleading Claims By Riot Platforms Amidst Acquisition Dispute

By: Eliza Bennet

Bitfarms, a leading Bitcoin miner, has issued a strong statement addressing what it terms as 'misleading claims' by rival Riot Platforms. This development comes amid escalating tensions over Riot's amended acquisition proposal. On Sept. 4, Bitfarms emphasized that Riot's offer is essentially an attempt to acquire Bitfarms at a discounted price, which would primarily benefit Riot's shareholders rather than those of Bitfarms.

Riot had earlier criticized Bitfarms' plan to acquire Stronghold Digital Mining in an open letter to shareholders on Sept. 3. According to Bitfarms, Riot has declined to engage in meaningful discussions, refused to sign a non-disclosure agreement, and has taken actions that Bitfarms claims have undermined the interests of its shareholders.

Changes Made Independently

In addressing recent leadership changes, Bitfarms clarified that these were implemented independently of Riot's involvement and were aimed at enhancing shareholder value. The company questioned the potential value that Riot's board nominees could offer and emphasized the qualifications of its leadership team. Bitfarms also highlighted its proposed acquisition of Stronghold, which could add up to 307 megawatts (MW) of power capacity. This acquisition aligns with Bitfarms' broader strategy to diversify energy access and expand its presence in the U.S., ultimately aiming for an energy portfolio surpassing 950 MW by 2025.

Bitfarms said its Board would review and respond to Riot's amended requisition proposal in due course but advised shareholders that no immediate action was required. The company reiterated its commitment to enhancing shareholder value in both the short and long term.

Hostile Takeover

The dispute between Bitfarms and Riot dates back to earlier this year when Riot made an unsolicited offer to acquire Bitfarms. Bitfarms rejected this offer, arguing that it undervalued the business. Undeterred, Riot continued its pursuit, pushing for changes in Bitfarms' corporate governance and suggesting the need for improvements in leadership and strategic direction. Riot even nominated its own slate of candidates for Bitfarms' board.

Bitfarms has consistently refuted Riot's claims, asserting that its board and management have been taking independent actions to strengthen the company’s financial position and growth prospects. The public back-and-forth has escalated, with Riot resorting to what Bitfarms describes as 'public attacks' to pressure the firm into accepting a deal.