Bitfarms Defends against Riot's “Misleading” Claims as Takeover Tensions Rise

In response to what it describes as a hostile takeover attempt, Bitfarms has strongly rejected claims made by Riot Platforms, accusing Riot of trying to undermine the company for its own gain. The conflict between the two Bitcoin mining giants has escalated, with Bitfarms issuing a public statement to address what it calls “misleading claims” by Riot, aiming to sway Bitfarms' shareholders.

Disputes Over Acquisition Attempts

At the center of the dispute is Riot's attempt to acquire Bitfarms at what the latter describes as a “discounted price,” an offer that Bitfarms believes serves only Riot's interests.

According to Bitfarms, Riot has refused to engage in meaningful negotiations, including declining to sign a standard non-disclosure agreement or present a revised proposal. Instead, Riot has chosen to pursue a public campaign aimed at destabilizing Bitfarms' current strategy and leadership.

In a statement today (Wednesday) the company explained: “The recent Board and leadership changes that Bitfarms has implemented were made independently of Riot, on behalf of all of our shareholders, to ensure the right team is in place to enhance shareholder value at Bitfarms, not for Riot's benefit and approval.”

The company's leadership team is described as "best-in-class," with the expertise required to execute its strategic vision effectively.

Plans to Increase Energy Resources

Central to Bitfarms' strategy is its proposed acquisition of Stronghold, a move aimed at diversifying the company's energy portfolio. This acquisition, which could add up to 307 MW of power capacity, is part of Bitfarms' broader plan to increase its energy resources to over 950 MW by the end of 2025, with nearly half of that capacity located in the US.

“Our recent proposed acquisition of Stronghold is consistent with our strategy to diversify our access to power and also rebalance our energy portfolio towards the US,” Bitfarms added. “Through this transaction, we will leverage our operational expertise and proprietary data analytics system to build on Stronghold's capabilities and further optimize its sites to advance the combined company's position in the marketplace.”

The Bitfarms Board plans to review and respond to Riot's amended requisition proposal but has assured shareholders that no immediate action is required on their part.