Bitcoin mining company Bitfarms has responded to what it says are misleading statements from Riot Platforms about a special meeting and a possible acquisition. Bitfarms claims that Riot has constructively declined to engage and is attempting to acquire Bitfarms at a discount for the benefit of its own shareholders. The board will consider Riot’s proposal, but shareholders are not required to take any action at this time.

Bitfarms Slams Riot Platforms Over Alleged Misrepresentations and Acquisition Attempts

Bitcoin mining company Bitfarms Ltd. (Nasdaq/TSX: BITF) issued a statement on Wednesday regarding recent actions by Riot Platforms Inc. (Riot). Bitfarms criticized Riot’s “misleading statements” regarding a special meeting and its alleged attempt to acquire Bitfarms at a lower price. Riot published an open letter to Bitfarms shareholders this week calling for reform of the mining company.

Bitfarms stressed that Riot “refused to engage constructively,” refusing to enter into a standard non-disclosure agreement or make a proposed amendment. Bitfarms stated:

The upcoming special meeting is not about corporate governance… it is about Riot’s attempt to acquire Bitfarms at a discount for the benefit of Riot shareholders, not Bitfarms shareholders.

Bitfarms also highlighted its recent strategic moves, including changes to its board of directors aimed at enhancing shareholder value independent of Riot’s influence. The company emphasized the experience and skills of its current team and expressed skepticism about Riot’s board nominees. Additionally, Bitfarms discussed its proposed acquisition of Stronghold, which aims to diversify its access to electricity and grow its energy portfolio, with plans to increase capacity to more than 950 MW by 2025.

The board plans to consider Riot’s proposed amendment but noted that no shareholder action is required at this time. Bitfarms emphasized:

We remain steadfast in our commitment to deliver superior value in the near and long term.

What do you think about Bitfarms’ stance on Riot Platforms’ misleading statements and acquisition attempt? Let us know in the comments below.

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