Bitcoin miner Bitfarms issued a press release addressing what it known as deceptive claims by rival Riot Platforms amid ongoing tensions over the latter’s amended acquisition proposal.
Within the Sept. 4 press launch, Bitfarms emphasised that Riot’s proposal is just not about company governance however quite an try to purchase it at a reduced value. The agency additional acknowledged that the transfer would primarily profit Riot shareholders quite than Bitfarms’ personal traders.
The assertion comes after Riot criticized Bitfarms’ plan to amass Stronghold Digital in an open letter to shareholders on Sept. 3.
Modifications made independently
Bitfarms claimed that Riot has refused to interact in significant discussions, together with declining to signal a regular non-disclosure settlement or submit a revised proposal. As an alternative, Riot has taken actions that Bitfarms claims have undermined the pursuits of its shareholders.
The agency additionally clarified that the latest management modifications have been made “independently of Riot’s involvement” and applied to strengthen shareholder worth. It additional emphasised the {qualifications} of its management group and questioned the potential worth that Riot’s board nominees might provide.
Bitfarms additionally highlighted that its proposed acquisition of Stronghold as a part of its ongoing technique to diversify power entry and develop its presence within the US. The acquisition, which might add as much as 307 megawatts (MW) of energy capability, aligns with Bitfarms’ aim of rising its power portfolio to over 950 MW by the top of 2025, with almost half of that capability primarily based within the US.
Bitfarms acknowledged that the Board would overview and reply to Riot’s amended requisition proposal sooner or later however suggested shareholders that no fast motion was required. The corporate reiterated its dedication to enhancing shareholder worth in each the brief and long run.
Hostile takeover
The dispute between the 2 companies dates started earlier this yr when Riot first made an unsolicited provide to amass Bitfarms. Nonetheless, the latter rejected this overture, citing considerations concerning the phrases of the acquisition, which it believed undervalued its enterprise.
Riot, undeterred, continued its pursuit and started pushing for modifications in Bitfarms’ company governance, suggesting that enhancements in management and strategic course have been needed. It additionally nominated its personal slate of candidates for Bitfarms’ board, arguing that recent views have been wanted to align the corporate’s technique with market calls for.
Nonetheless, Bitfarms has constantly refuted Riot’s claims, asserting that its board and administration have been taking impartial actions to strengthen the corporate’s monetary place and progress prospects.
This public back-and-forth has escalated, with Riot resorting to what Bitfarms describes as “public attacks” to stress the agency into accepting a deal.
