Riot Sells $1.58M in Bitfarms Shares as Part of Investment Review

Bitcoin

Bitcoin mining company Riot Platforms (RIOT), valued at $109,156.97, said it has sold 1.75 million shares of rival Bitfarms (BITF) for about $1.58 million as part of an ongoing review of its investment in the company following a failed acquisition attempt that increased its stake in the company to nearly 15%.

Shares sold on June 9 on Nasdaq and other public markets achieved a volume-weighted average price of about $0.90 per share, reducing Riot's ownership stake to 14.3%, the company said.

The hostile takeover bid came to light in May 2024, when Riot offered to buy Bitfarms for $2.30 per share, but the offer was quickly rejected and rescinded the following month. Riot continued to buy up its rival’s shares to pressure the board into contacting the miner. In response, Bitfarms devised a shareholder rights plan, or “poison pill,” to prevent Riot from acquiring the company.

Riot noted that it remains focused on evaluating its position in Bitfarms given a variety of changing factors. These include potential discussions with Bitfarms management, the company’s strategic direction, and overall market conditions. Riot said it may either increase or decrease its holdings in the future based on these considerations.

Bitfarms shares rose 4% in premarket trading to $0.96. Riot shares rose 0.49% to $10.17.

Source: cryptonews.net