Bitcoin miner Riot Platforms (RIOT) has sold 1.75 million shares of fellow mining company Bitfarms (BITF) for approximately $1.58 million, marking a partial divestment following its failed takeover attempt.
The sale, conducted on June 9 through the Nasdaq and other open markets, yielded a weighted average price of around $0.90 per share.
Riot Reassesses Bitfarms Stake After Failed Buyout Bid
The move comes as part of Riot’s ongoing reassessment of its investment in Bitfarms following the rejection of its acquisition bid.
Riot’s stake in Bitfarms had previously climbed to nearly 15%, positioning it as a significant shareholder. With this recent transaction, Riot’s beneficial ownership has now been reduced to about 14.3%.
The divestment suggests Riot may be scaling back its efforts or reevaluating its strategic interest in Bitfarms, despite previously indicating its desire to influence the company’s future.
The development highlights the tensions that can arise when one publicly traded miner seeks control over another in a highly competitive and volatile industry.
While Riot remains a major shareholder, its reduced stake could also signal a shift toward alternative strategies or targets within the mining sector. Investors will likely watch closely for further changes in Riot’s position or new moves in the crypto mining M&A space.
Also Read: Bitcoin Miner Riot Expands into AI and High-Performance Computing Amidst Declining Network Activity
Riot to Monitor Bitfarms Investment, May Adjust Stake
Riot plans to continuously evaluate its investment in Bitfarms and may adjust its stake in the future based on a range of factors.
These include the company’s financial health, strategic direction, discussions with Bitfarms’ management or board, general market conditions, and alternative investment opportunities.
Depending on these factors, Riot may choose to either increase or reduce its holdings.
This could involve buying or selling Bitfarms’ common shares or related securities—such as debt, derivatives, or other instruments—through public markets or private transactions.
Riot may also engage in financial strategies to hedge or amplify its economic exposure to Bitfarms’ stock without necessarily changing its actual ownership.
Additionally, Riot is keeping the door open to potentially pursue actions outlined in its early warning report filed under Canadian securities law, which may include a range of strategic or governance-related moves.
Also Read: Bitfarms Acquires Stronghold Digital Mining For 60M Bitfarms Shares To Accelerate U.S. Growth
Riot-Bitfarms Saga: What Happened?
In May 2024, Riot Platforms launched a hostile takeover bid to acquire Bitfarms at $2.30 per share. Bitfarms quickly rejected the offer, prompting Riot to abandon the formal bid by the next month.
However, Riot continued purchasing Bitfarms’ shares on the open market to pressure the company’s board into negotiations. In response, Bitfarms adopted a shareholder rights plan—commonly known as a “poison pill”—to block Riot from gaining further control.
This defensive measure is designed to dilute the value of Riot’s shares if it tries to acquire too much stake without board approval, effectively protecting Bitfarms from a forced sale.
The standoff highlights the escalating tension between the two Bitcoin miners amid broader industry consolidation.
Also Read: Bitcoin Mining Giant HIVE Digital Acquires Bitfarms’ Paraguay Bitcoin Mining Farm For $56M