Bitcoin Mining Company, Riot Platforms, Cancels Acquire Bitfarms!

Bittime - Bitcoin mining company Riot Platforms announced that it is dropping its acquisition proposal Bitfarms. This announcement comes after more than a year of efforts by Riot to reach good negotiations with Bitfarms.

Background of Acquisition Proposal

Initially, Riot Platforms submitted a proposal to acquire Bitfarms at $2.30 per share. However, this offer was rejected by the board of directors Bitfarms. To apply further pressure, Riot continued to buy shares Bitfarms until they became the largest shareholders with ownership of 14.9% of the company.

Strategy for Reshuffling the Board of Directors

Riot Platforms announced its plans to replace members of its board of directors Bitfarms, including interim Chairman and CEO Nicolas Bonta, as well as director Andrés Finkielsztain. They put forward three new candidates, namely John Delaney, Amy Freedman, and Ralph Goehring. Riot also requested a special meeting be held to remove existing board members and replace them with their proposed candidates.

Challenges and Obstacles

The main challenge facing Riot is the "poison pill" plan implemented by Bitfarms. This plan is designed to prevent acquisitions by diluting the shares held by parties seeking to take over the company.

However, Riot remains committed to continuing their acquisition efforts, believing that the merger of the two companies will create the largest Bitcoin mining company listed on a public exchange.

Impact on Stock Prices

This announcement had a negative impact on the share prices of both companies. Bitfarms shares fell more than 6% after the news, although they remained trading above the $2.30 per share buyout offer.

This shows that traders are still looking Bitfarms as a potential acquisition target. On the other hand, Riot shares also fell slightly as Bitcoin prices fell by 3% in the last 24 hours.

Riot Platforms believes that with a shake-up of the board of directors Bitfarms, they can achieve more constructive negotiations and ultimately succeed in their acquisition efforts. If successful, the merger is expected to create the world's largest Bitcoin mining company that is strongly positioned for long-term growth.

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