Riot Platforms acquires 12% stake in rival Bitfarms

By Thomson Reuters Jun 5, 2024 | 7:34 PM

(Reuters) – Bitcoin miner Riot Platforms said on Wednesday it has acquired ownership of 12% stake in rival Bitfarms Ltd..

The company bought around 1.5 million shares in Bitfarms on Wednesday at the price of about $2.45 per purchased share, it said in a statement.

Riot said, prior to this acquisition it beneficially owned about 11.63% of shares in Bitfarms.

The company said it intends to request a special shareholder meeting to add independent directors to Bitfarms’ board citing concerns regarding its corporate governance.

The announcement comes after investment firm Kerrisdale Capital revealed a short position in Riot Platforms earlier in the day, sending shares of the bitcoin miner down as much as 9%.

The bitcoin miner had made a proposal to acquire all shares of Bitfarms last week for about $950 million in total equity value.

(Reporting by Disha Mishra in Bengaluru)