Bitfarms Rejected $950 Million Riot Platforms’ Acquisition Proposal, Citing Undervaluation
Bitfarms, a global Bitcoin mining company, confirmed on May 28 that it received and rejected an acquisition proposal from Riot Platforms on April 22, 2024.
The proposal, offering US$2.30 per Bitfarms common share in cash and Riot common stock, was evaluated by a Special Committee of the Bitfarms Board, consisting solely of independent directors.
Bitcoin mining firm Bitfarms explained its decision to reject Riot Platforms’ acquisition proposal in a statement.
According to a recent Bloomberg report, Riot’s offer includes a mix of cash and common stock, valuing Bitfarms at approximately $950 million in equity. This represents a 24% premium over Bitfarms’ one-month volume-weighted average share price as of May 24, 2024.
The proposed acquisition was said to combine cash and Riot common stock, resulting in Bitfarms shareholders owning up to 17% of the merged entity. Riot stated that this proposal offers Bitfarms shareholders substantial immediate value and potential for future growth within a financially robust company led by a proven management team.
Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World’s Largest Publicly Listed Bitcoin Miner.
Read the full press release here: https://t.co/SnBijrL3i7
For disclaimers, please visit: https://t.co/6RQFSK9MKb.
— Riot Platforms, Inc. (@RiotPlatforms) May 28, 2024
The initial proposal was privately submitted to the Bitfarms Board of Directors on April 22, 2024, but was rejected without substantive discussion. Following this, Riot has decided to make the proposal public, citing new allegations from a lawsuit filed by Bitfarms’ recently terminated CEO, which questions the commitment of certain directors to shareholder interests.
Bitfarms set up a Special
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