Bitcoin Miner Riot Platforms Ditches Bitfarms Takeover Bid, Seeks to Overhaul Board

Riot Platforms, a prominent Bitcoin miner, has dropped its proposal to acquire Bitfarms, a peer company, and is now seeking to overhaul the board of directors. This move comes after a year of attempting to engage constructively with Bitfarms regarding a potential combination of the two companies.

Riot, which owns 14.9% of Bitfarms, has nominated three new members to replace the current board members. The company is seeking to remove Bitfarms’ Chairman and interim CEO Nicolas Bonta, director Andrés Finkielsztain, and anyone who might fill the vacancy created by the resignation of co-founder Emiliano Grodzki.

Bitcoin mining operations

The hostile takeover bid was made public last month after Riot offered to buy Bitfarms for $2.30 per share, an approach that was swiftly rejected. Riot continued to buy its rival’s shares to exert pressure on the board to engage with the miner. Subsequently, Bitfarms implemented a shareholder rights plan or “poison pill” to deter Riot from buying the company.

Riot said it will continue pursuing a takeover because a combination would create the world’s largest publicly listed Bitcoin miner that is “well positioned for long-term growth.”

Bitcoin price chart

Meanwhile, the cryptocurrency market has been experiencing a downturn, with Bitcoin slipping below $61,000. The market is awaiting the repayment of 142,000 BTC and 143,000 BCH to creditors of the defunct Mt. Gox exchange, which is expected to begin in July.

Mt. Gox logo

The repayment is expected to have a significant impact on the market, with some analysts predicting a sell-off. However, others believe that the repayment will be a positive development for the market, as it will provide a sense of closure for creditors who have been waiting for nearly a decade.

Bitcoin whale

In other news, Japanese institutional investors are warming up to digital assets, according to a survey by Nomura. The survey found that over 50% of the managers planned to invest in crypto in the next three years, viewing it as a diversification opportunity.

Japanese yen

The pivot to crypto comes as Japan’s debt load and exchange-rate volatility continue to mount. Tokyo-listed Metaplanet recently adopted BTC as a reserve asset to hedge against Japan’s fiscal problems.

Metaplanet logo

As the market continues to evolve, one thing is clear: the world of cryptocurrency is full of twists and turns. Stay tuned for more updates and analysis from the world of crypto.