Key Information: https://bit.ly/3wPudve
Today, Riot Platforms, Inc. announced it has accumulated a 9.25% stake in Bitfarms and made a proposal to the Bitfarms’ Board of Directors to acquire Bitfarms, which, if successful, would create the world’s largest publicly-traded Bitcoin miner. We deeply respect the Bitfarms management team, but to our surprise, our proposal was rejected by their Board without any serious engagement or dialogue with us.
Combined, our two companies would have 52 EH/s of self-mining capacity by year-end 2024, with up to 2.2 GW of total power capacity when fully developed across 15 sites globally. We think this is a very exciting prospect for both Riot and Bitfarms’ shareholders and have been working for some time to pursue this transaction, culminating in our recent proposal to the Bitfarms Board, in which we offered Bitfarms’ shareholders a significant premium to the market price.
Unfortunately, the Bitfarms Board has not responded in a manner consistent with what would be expected of prudent directors when presented with a potential value-creation opportunity. Our proposal was met with a demand that we sign an unreasonable standstill agreement which, among other provisions, initially had a period of three years and therefore would have given the Bitfarms Board complete control over whether our proposal was properly considered irrespective of the best interests of Bitfarms’ shareholders.
As Bitfarms’ largest single shareholder, we are deeply concerned by the actions of their Board. Their entrenching behavior, the sudden termination of their CEO without a succession plan in-place during a critical period of execution and allegations made by their former CEO in a recent lawsuit, if correct, casts uncertainty on Bitfarms’ future. The path forward is clear – governance changes are needed.
To that end, Riot intends to requisition a Special Meeting of Bitfarms’ shareholders, during which we intend to nominate new well-qualified and independent directors to join the Bitfarms Board. We believe this refresh of the Bitfarms Board will help ensure adherence to proper corporate governance practices and position Bitfarms for long-term success, unlocking the value that shareholders have been awaiting for too long.
Riot is committed to success in this endeavor, and we thank both our shareholders, and our fellow Bitfarms shareholders, for their support as we move forward.
Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World’s Largest Publicly Listed Bitcoin Miner.
Read the full press release here: https://lnkd.in/gqEtTfah
For disclaimers, please visit: https://bit.ly/3wPudve.
Riot Proposes to Acquire Bitfarms for US$2.30 Per Share to Create the World’s Largest Publicly Listed Bitcoin Miner
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2moDoes this mean we officially retire our terrible 5-a-side team? (Sorry boys)