Riot Platforms announced on Tuesday an increase in its stake in rival Bitfarms to 18.9%. The Bitcoin mining firm acquired 1 million common shares of Bitfarms, representing approximately 0.22% of the company’s outstanding stock. This acquisition raises Riot’s total holdings in Bitfarms to about 85.3 million shares.
Earlier the same day, Bitfarms disclosed that co-founder and chairman Nicolas Bonta, one of the three board members Riot sought to replace, would be departing the company immediately.
The move follows a prolonged dispute between the two companies that began in April when Riot made an unsolicited $950-million offer to acquire the Canada-based Bitfarms. Bitfarms dismissed the bid as undervaluing the company and implemented a “poison pill” strategy to resist the takeover attempt. A poison pill is a defensive tactic used by companies to prevent hostile takeovers by making the company less attractive to potential acquirers.
Although Riot withdrew its offer at the time, it is now aiming to secure three seats on Bitfarms’ board and has expressed its willingness to negotiate with the newly reconstituted board regarding a possible transaction.
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