Riot Platforms Abandons Bitfarms Takeover Targets Board Restructuring

By Mehek Jun 24, 2024 #Bitfarms #Riot Platforms

Riot Platforms Drops Takeover Bid, Aims to Restructure Bitfarms Board

Key Points:

  • Riot Platforms (RIOT) withdraws its takeover bid for Bitfarms (BIT).
  • Riot seeks to replace the Bitfarms board before further takeover attempts.
  • Bitfarms’ shares remain above Riot’s $2.30 per share offer, indicating potential interest from other buyers.

The Conflict Unfolds

Riot Platforms, a major Bitcoin miner, has dropped its proposal to acquire rival Bitfarms and has set its sights on revamping the target company’s board of directors. This move follows over a year of unsuccessful efforts by Riot to engage constructively with the Bitfarms board.

In a press release, Riot expressed its belief that “good faith negotiations simply will not be possible until there is real change in the Bitfarms boardroom.” The company has nominated three candidates, John Delaney, Amy Freedman, and Ralph Goehring, to replace current board members.

Hostile Takeover and Resistance

Riot’s takeover bid became public last month, with an offer of $2.30 per share. However, Bitfarms swiftly rejected the approach, prompting Riot to buy significant shares in the company to exert pressure. In response, Bitfarms implemented a “poison pill” to deter a hostile takeover.

The Path Forward

Despite withdrawing its takeover bid, Riot has stated its intention to continue pursuing a combination with Bitfarms. The company believes that a merger would create the world’s largest publicly listed Bitcoin miner, positioning them for long-term growth.

Shareholders’ Perspective

Bitfarms shares dropped over 6% on Monday, though they remain above Riot’s buyout offer. This suggests that investors still view BITF as a potential takeover target. Riot shares, meanwhile, have experienced a slight decline along with Bitcoin’s recent 3% drop.


The ongoing saga between Riot Platforms and Bitfarms highlights the competitive landscape of the Bitcoin mining industry. Riot’s decision to withdraw its takeover bid while seeking to overhaul the Bitfarms board indicates a shift in strategy. It remains to be seen how these events will unfold and whether a combination between the two companies will ultimately be realized.

By Mehek

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