In response to what it describes as a hostile takeover
attempt, Bitfarms has strongly rejected claims made by Riot Platforms, accusing
Riot of trying to undermine the company for its own gain. The conflict between the two Bitcoin mining giants has
escalated, with Bitfarms issuing a public statement to address what it calls
“misleading claims” by Riot, aiming to sway Bitfarms’ shareholders.
Disputes Over Acquisition Attempts
At the center of the dispute is Riot’s attempt to acquire Bitfarms at what the latter describes as a “discounted
price,” an offer that Bitfarms believes serves only Riot’s interests.
According to Bitfarms, Riot has refused to engage in
meaningful negotiations, including declining to sign a standard non-disclosure
agreement or present a revised proposal. Instead, Riot has chosen to pursue a
public campaign aimed at destabilizing Bitfarms’ current strategy and
leadership.
In a statement today
(Wednesday) the company explained: “The recent Board and leadership changes that Bitfarms has
implemented were made independently of Riot, on behalf of all of our
shareholders, to ensure the right team is in place to enhance shareholder value
at Bitfarms, not for Riot’s benefit and approval.”
The company’s leadership team is
described as “best-in-class,” with the expertise required to execute
its strategic vision effectively.
Plans to Increase Energy Resources
Central to Bitfarms’ strategy is its proposed
acquisition of Stronghold, a move aimed at diversifying the company’s energy
portfolio. This acquisition, which could add up to 307 MW of power capacity, is
part of Bitfarms’ broader plan to increase its energy resources to over 950 MW
by the end of 2025, with nearly half of that capacity located in the US.
“Our recent proposed acquisition of Stronghold is
consistent with our strategy to diversify our access to power and also
rebalance our energy portfolio towards the US,” Bitfarms added. “Through this transaction, we
will leverage our operational expertise and proprietary data analytics system
to build on Stronghold’s capabilities and further optimize its sites to advance
the combined company’s position in the marketplace.”
The Bitfarms Board plans to review and respond to
Riot’s amended requisition proposal but has assured shareholders that no
immediate action is required on their part.
This article was written by Jared Kirui at www.financemagnates.com.
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