Riot Platforms Withdraws Interest In Taking Over Bitfarms
Riot Platforms Withdraws Interest In Taking Over Bitfarms . (MENAFN - Investor Brand Network) 

In a surprising turn of events,Riot Platforms, Inc. (NASDAQ: RIOT) , a digital mining and digital infrastructure company, haswithdrawn its proposed takeover offer ...
América - MenaFN
(MENAFN- Investor Brand Network) In a surprising turn of events,

Riot Platforms, (NASDAQ: RIOT) , a digital and digital infrastructure company, has

withdrawn its proposed takeover offer

of $950 million for rival Bitfarms. Apparently, this move wasn't completely out of the blue. It came just after the rival mining company rejected Riot's offer without any dialogue and adopted defensive measures against the unwanted acquisition. This defensive tactic is aimed at making it extremely difficult for Riot Platforms to acquire Bitfarms completely by diluting the value of its shares.

Riot Platforms had to step down from the takeover, but not entirely. This major player in the Bitcoin mining industry is planning to reorganize the Bitfarms' board of directors by installing three independent directors. These directors include John Delaney, Amy Freedman and Ralph Goehring, who could potentially revive the acquisition plan in the near future.

According to Riot Platforms' press release, good faith negotiations with Bitfarms are unlikely unless there is a change in the Bitfarms boardroom.

Following these developments,

Bitfarms shares

fell by 6.2% on the Toronto Stock Exchange and 6.1% on Nasdaq.

Initially, Riot Platforms aimed to acquire Bitfarms by paying for each share at $2.30, a move perceived as a hostile takeover. However, since Bitfarms rejected the offer, Riot Platforms tried to purchase more of its shares to pressure the shareholders.

Why all this? Riot Platforms holds a substantial stake in the company, 15% to be precise, meaning it has an influence over Bitfarm's future.

Once a reconstituted board is in place, Riot Platforms plans to continue the discussions regarding the acquisition. To achieve this, Riot Platforms has requested a special meeting with Bitfarms shareholders to vote on the removal of chair and interim CEO Nicolas Bonta, director Andres Finkielsztain and any new appointee filling the board vacancy left by cofounder Emiliano Grodzk. Riot Platforms aims to reshape the board of directors to better align Bitfarms with its own strategic goals, both in the near and distant future.

In response to this move,

Bitfarms appointed Fanny Philip

to the company's board of directors as an independent board member. Following her appointment, Bitfarms' board now consists of five members, with four of them being independent. This move suggests that the company is taking a proactive approach to strengthen its position in the industry and potentially fend off Riot Platforms' unwarranted advances.

About BillionDollarClub

BillionDollarClub

(“BDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 60+ brands within

the

Dynamic Brand Portfolio

@

IBN

that delivers :

(1) access to a vast network of wire solutions via

InvestorWire

to efficiently and effectively reach a myriad of target markets, demographics and diverse industries ;

(2) article and

editorial syndication to 5,000+ outlets ;

(3) enhanced

press release enhancement

to ensure maximum impact ;

(4)

social media distribution

via IBN to millions of social media followers ;

and (5) a full array of tailored

corporate communications solutions . With broad reach and a seasoned team of contributing journalists and writers, BDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today's market, BDC brings its clients unparalleled recognition and brand awareness.

BDC is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from BillionDollarClub, text“Billion” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit



Please see full terms of use and disclaimers on the BillionDollarClub website applicable to all content provided by BDC, wherever published or re-published:

/Disclaimer

BillionDollarClub

Los Angeles, CA



310.299.1717 Office

[email protected]

BillionDollarClub

is powered by

IBN
Jordania
https://menafn.com/images/Menafn_SmallLogo.jpg
https://menafn.com/1108913921/Riot-Platforms-Withdraws-Interest-In-Taking-Over-Bitfarms
2024-11-22
rss
(MENAFN - Investor Brand Network) 

In a surprising turn of events,Riot Platforms, Inc. (NASDAQ: RIOT) , a digital mining and digital infrastructure company, haswithdrawn its proposed takeover offer ...
Riot Platforms Withdraws Interest In Taking Over Bitfarms