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Bitcoin mining firm Bitfarms has responded to Riot Platforms’ allegedly misleading statements about a special meeting and potential acquisition. Bitfarms claimed that Riot refused to engage constructively and is attempting to buy Bitfarms at a discount for its own shareholders’ benefit. The board will review Riot’s proposal but shareholders do not need to take any action at this time.
Bitfarms Criticizes Riot Platforms Over Alleged Misleading Claims and Acquisition Attempts
Bitcoin mining firm Bitfarms Ltd. (Nasdaq/TSX: BITF) issued a statement on Wednesday addressing recent actions by Riot Platforms Inc. (Riot). Bitfarms criticized Riot’s “misleading claims” regarding a special meeting and an alleged attempt to acquire Bitfarms at a reduced price. Riot released an open letter this week to Bitfarms shareholders, calling for an overhaul of the mining company.
Bitfarms emphasized that Riot had “declined to engage constructively,” refusing to enter into a standard non-disclosure agreement or offer a revised proposal. Bitfarms stated:
The upcoming special meeting is not about corporate governance … but rather about Riot attempting to acquire Bitfarms at a discounted price for the benefit of Riot shareholders, not Bitfarms shareholders.
Bitfarms also highlighted its recent strategic moves, including board changes aimed at enhancing shareholder value independently of Riot’s influence. The company emphasized the experience and skills of its current team and expressed skepticism about Riot’s board nominees. Additionally, Bitfarms discussed its proposed acquisition of Stronghold, which aims to diversify its power access and increase its energy portfolio, with plans to boost capacity to over 950 MW by 2025.
The board plans to review Riot’s amended proposal but noted that no action is required from shareholders at this time. Bitfarms stressed:
We remain steadfast in our commitment to delivering exceptional value in the near- and long-term.