Riot Platforms (RIOT), a leading Bitcoin miner, has announced it sold 1.75 million shares of its competitor Bitfarms (BITF) for approximately $1.58 million. This move is part of Riot’s ongoing reassessment of its investment in Bitfarms, following a failed takeover attempt that pushed its stake close to 15%.
The shares were sold on June 9th through the Nasdaq and other open markets, averaging around $0.90 per share. As a result, Riot’s ownership in Bitfarms decreased to 14.3%. The hostile takeover bid was made public in May 2024, with Riot offering to acquire Bitfarms at $2.30 per share—a proposal quickly rejected and later abandoned in June. Despite the bid’s failure, Riot continued purchasing shares to pressure Bitfarms’ board into negotiations. In response, Bitfarms implemented a “poison pill” shareholder rights plan to prevent further acquisitions.
Riot emphasized that it remains committed to evaluating its position in Bitfarms, considering factors like potential discussions with management, the company’s strategic direction, and market conditions. Depending on how these factors evolve, Riot might increase or decrease its stake in the future.
Market reactions saw Bitfarms stock rise 4% in pre-market trading to $0.96, while Riot’s shares gained a modest 0.49%, reaching $10.17.
