Riot Platforms, a leading U.S.-based Bitcoin mining company, has sold 1.75 million shares of Bitfarms in open market transactions totaling approximately $1.58 million. The move is part of an ongoing strategic review of Riot’s investment in its Canadian rival following an unsuccessful takeover bid earlier this year.
Riot Lowers Stake but Remains a Major Shareholder
The shares were sold on June 9 through Nasdaq and other open markets at a weighted average price of around $0.90 per share. Following the transaction, Riot’s beneficial ownership in Bitfarms dropped to 14.3%, down slightly from its previous level of just under 15%.
“The transaction is part of a broader assessment of our position in Bitfarms,” Riot said in a statement, underlining that future holdings may increase or decrease depending on a variety of factors.
Failed Takeover and Ongoing Tensions
Riot’s aggressive approach to acquiring Bitfarms began in May 2024, when it launched a hostile takeover bid offering $2.30 per share. The bid was swiftly rejected by Bitfarms’ board, which viewed it as undervalued and implemented a “poison pill” defense—a shareholder rights plan to block Riot from further accumulation.
Despite the rejection, Riot continued to acquire Bitfarms shares, aiming to pressure management into negotiations. Bitfarms responded with a firm stance, opting to protect its independence.
“Bitfarms’ board believes in its current strategy and long-term growth plan,” the company stated during the takeover discussions.
Market Reaction and Strategic Implications
Following the news of the share sale, Bitfarms stock climbed 4% in pre-market trading to $0.96, reflecting cautious optimism from investors. Riot’s stock also edged up 0.49% to $10.17.
While Riot remains a significant shareholder, the recent sale suggests a more flexible investment approach moving forward. Riot stated that it will continue to monitor Bitfarms’ strategic direction, market dynamics, and the potential for renewed discussions with the company’s leadership.
Conclusion
Riot’s partial exit highlights the volatile nature of M&A activity in the crypto mining sector. As regulatory and market conditions shift, major players like Riot are reassessing investment strategies to align with broader operational goals. The future of Riot’s involvement in Bitfarms remains open-ended, depending on both companies’ evolving positions.