Riot continues its acquisition efforts, recently purchasing $2.2 million worth of shares in Bitfarms.
Riot Platforms announced the purchase of 1 million common shares from rival Bitfarms, raising its stake in the Canadian bitcoin mining company to around 18.90%. press releaseRiot said the shares were acquired at a weighted average price of $2.28 per share, for a total consideration of about $2.3 million.
The acquisition comes as Riot continues its pursuit of Bitfarms, following a $950 million bid earlier this year that was withdrawn after failing to gain traction with Bitfarms’ board. Riot’s latest stock purchase increases its influence, with the company now owning nearly 19% of Bitfarms’ total shares. Bitfarms shares rose 3.26% following the news, according to data from Google Finance.
Riot previously called a special meeting to propose changes to Bitfarms’ board of directors and expressed its continued interest in shaping the strategic direction of the company. Amid these developments, Bitfarms also underwent leadership changes, including the appointment of Ben Gagnon as CEO and Brian Howlett as independent chairman of the board.
Nicholas Bonta, who co-founded Bitfarms and was at the heart of the takeover battle against Riot, also recently stepped down from the board.
Bitfarms is looking for new ways to fight takeover bids
Meanwhile, PetFarms is trying to respond to regulatory challenges and recent legal rulings that impact shareholder rights plans amid a takeover attempt. To address these issues, PetFarms has introduced a “new rights plan” designed to ensure fair treatment for all shareholders in the event of an unsolicited takeover attempt.
The new plan includes measures to protect against “creeping bids,” whereby a buyer gradually accumulates 20% or more of the company’s shares through tax-free purchases. The plan, which will be in effect for six months, allows existing shareholders to buy additional shares at a discount, which would dilute any potential buyer’s stake and protect shareholders’ interests.