Bitfarms nasdaq Bitf Stock Rises Amidst Riot Platforms Acquisition Proposal

Bitfarms (NASDAQ: BITF) Stock Rises Amidst Riot Platforms Acquisition Proposal

Bitfarms (NASDAQ: BITF) stock jumped during early trading Wednesday after Riot Platforms proposed acquiring all of its outstanding shares and disclosed a 9.25% stake in the Bitcoin mining company.

Riot Platforms (RIOT) has submitted a proposal to Bitfarms’ board, seeking to acquire all outstanding shares of Bitfarms for $2.30 per share. This cash and stock offer equates to an approximate total equity value of $950 million.

Under the terms of the proposed deal, Bitfarms shareholders would retain ownership of up to about 17% of the combined entity, should the acquisition be finalized.

Riot Platforms disclosed that it initially delivered the proposal privately to Bitfarms’ board on April 22. However, the board reportedly rejected the proposal without entering into substantive discussions with Riot. Consequently, Riot has opted to make the proposal public, directly addressing Bitfarms shareholders.

In tandem with the acquisition bid, Riot Platforms has also made a significant investment in Bitfarms, accumulating a 9.25% stake and subsequently becoming the largest shareholder in the company.

Benjamin Yi, executive chairman of Riot, emphasized the strategic significance of the proposed merger, stating,

“A combination of Bitfarms and Riot would create the premier and largest publicly listed Bitcoin miner globally, with geographically diversified operations well-positioned for long-term growth.”

Yi further expressed disappointment with Bitfarms’ board for their swift dismissal of the proposal, highlighting the potential benefits it offers to Bitfarms and its shareholders. He remains confident that Bitfarms’ shareholders will recognize the compelling value proposition presented by the merger, viewing it as a superior alternative to Bitfarms’ standalone trajectory.

Bitfarms (NASDAQ: BITF) Stock Price Action

As of 10:31 a.m. (Eastern Time) Wednesday, BITF stock traded at $2.2450, marking a 1.58% increase compared to the previous trading session.