Riot Platforms And Bitfarms: Crypto Titans Lock Horns in Escalating Feud
Crypto News- The tension between crypto mining giants Riot Platforms and Bitfarms has reached a fever pitch, with recent maneuvers escalating the corporate dispute.
Riot’s Power Play: Acquisition and Escalation
In a bold move on June 11, Riot Platforms disclosed a significant increase in its ownership stake in Bitfarms. Acquiring approximately six million shares valued at over $111 million, Riot’s total holding surged from 9.25% to 13.1%.
Bitfarms’ Defense: The “Poison Pill” Strategy
Bitfarms swiftly responded to Riot’s aggressive acquisition by proposing a “poison pill” defense tactic. This strategy aims to thwart Riot’s efforts to amass a 15% or greater stake, intending to dilute share value and impede Riot’s takeover ambitions.
Rejected Offers and Internal Strife
The conflict’s origins trace back to April when Riot proposed acquiring Bitfarms at a premium above market price—an offer summarily rejected by Bitfarms’ board. Meanwhile, Bitfarms grapples with internal turmoil following the dismissal of CEO Geoffrey Morphy, who has since sued the company for damages totaling $27 million.
Stalemate and Uncertainty
As the dispute rages on, prospects for resolution remain dim. Both companies seem entrenched in their positions, signaling a prolonged standoff in the crypto mining sector.
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FAQ
What triggered the escalation in the dispute between Riot Platforms and Bitfarms?
The dispute intensified when Riot Platforms increased its ownership stake in Bitfarms by acquiring six million shares, worth over $111 million, on June 11. This move followed Bitfarms’ proposal of a “poison pill” defense strategy to deter Riot from further increasing its stake.
What is Bitfarms’ “poison pill” defense strategy?
Bitfarms’ “poison pill” defense mechanism is designed to prevent Riot Platforms from acquiring a 15% or greater stake in the company. It aims to dilute the value of shares, making it less attractive for Riot to pursue a takeover.
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