Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

How NEAR Protocol and Infinex are Redefining the DeFi User Experience

07/08/2025

Ethereum is Trading -8.20% Below Our Price Prediction for Aug 09, 2025

07/08/2025

Mag 7 Plans to ‘FOMO’ Into $650B Tech Investment Despite Trump’s U.S. Manufacturing Push

07/08/2025
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    Price Breaks All-Time High Record Again – Here’s What We Know

    04/08/2025

    Bitcoin Switzerland? El Salvador to Host First Fully Native Bitcoin Capital Markets

    04/08/2025

    Bitcoin Breaks $119K, but XLM and HBAR Aren’t Impressed by Its Meager Percentage Gain

    04/08/2025

    High-Stakes Consolidation Could Define Q3 Trend

    04/08/2025

    Ethereum is Trading -8.20% Below Our Price Prediction for Aug 09, 2025

    07/08/2025

    Ether ‘mega whales’ continue buying through weekend dip

    07/08/2025

    Chinese Analyst and Analysis Firm Reveals Expectations After Ethereum’s Drop! How Might ETH Move Next?

    07/08/2025

    Ether rebounds above $3,500, targets $3,900

    07/08/2025

    The Sui Ecosystem’s Top 3 Altcoin Performers

    29/07/2025

    Floki Launches $69000 Guerrilla Marketing Challenge With FlokiUltras3

    28/07/2025

    Crypto Beast denies role in Altcoin (ALT) crash rug pull, blames snipers

    28/07/2025

    $1.6 Billion XRP Surge: Here’s What’s Unfolding

    28/07/2025

    Bored Ape minter finally sells after 92% fall from peak

    07/08/2025

    Telegram NFT Gifts Hit $49M in Sales with 322K Wallets Active

    07/08/2025

    Cloudflare Accuses Perplexity AI of Using Stealth Crawlers to Evade Website Blocks

    05/08/2025

    CryptoPunks and Pudgy Penguins Draw Major Sales

    04/08/2025

    How NEAR Protocol and Infinex are Redefining the DeFi User Experience

    07/08/2025

    Ethereum is Trading -8.20% Below Our Price Prediction for Aug 09, 2025

    07/08/2025

    Mag 7 Plans to ‘FOMO’ Into $650B Tech Investment Despite Trump’s U.S. Manufacturing Push

    07/08/2025

    Aave Unveils V3 Developer Toolkit to Slash DeFi Integration Time

    07/08/2025
  • Blockchain

    Zoro Collaborates with MetYa to Offer AI-Driven DatingFi on Web3

    06/08/2025

    StarAI and INTO Collaborate to Revolutionize the Future of Web3 Interactions

    06/08/2025

    Blockchain technology can help decentralize the US energy grid — VC

    06/08/2025

    Base’s Jesse Pollak Rallies Support to Back On-Chain Creator Coin Index

    06/08/2025

    Spheron and OpenGradient Unite to Decentralize AI Model Deployment

    06/08/2025
  • DeFi

    How NEAR Protocol and Infinex are Redefining the DeFi User Experience

    07/08/2025

    Aave Unveils V3 Developer Toolkit to Slash DeFi Integration Time

    07/08/2025

    DeFi Cheers as SEC Affirms Liquid Staking Protocols Aren’t Securities

    06/08/2025

    Velo Universe DEX Achieves $1B Milestone, Merging Speed with DeFi Security

    06/08/2025

    Revolutionary Feature Arrives via Lido V3 Integration

    06/08/2025
  • Metaverse

    Where Has the Metaverse Gone? Examining a Failed (and Costly) Trend

    01/08/2025

    From Metaverse to Machine Learning, Inside Meta’s $72 Billion AI Gamble

    31/07/2025

    AntVerse Integrates Terminus to Transform AI-Powered Metaverse with Web3 Payments

    25/07/2025

    The Sandbox Launches Largest LAND Auction Using GBM Protocol

    21/07/2025

    Elon Musk’s xAI Quietly Fixed Grok by Deleting a Line of Code

    09/07/2025
  • Regulation

    Mag 7 Plans to ‘FOMO’ Into $650B Tech Investment Despite Trump’s U.S. Manufacturing Push

    07/08/2025

    Ripple Ranked Among Biggest Private Companies

    07/08/2025

    XRP ETF From Teucrium Sees Enormous Interest, Gains Massive Traction With Extraordinary Inflows

    07/08/2025

    South Korean banks are preparing to enter the crypto and stablecoin market

    07/08/2025

    ‘The economy is on the precipice of recession’, warns Moody’s senior economist

    07/08/2025
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    What Is Pump.fun? What To Know About How This Platform Works

    07/08/2025

    XRP and SOL Futures ‘Spiked’ in July

    07/08/2025

    Decentralized Perpetuals Volume Hits All-Time High of $399 Billion in July

    07/08/2025

    South Korean Crypto Exchange Coinone’s Groundbreaking Digital Asset Sale

    07/08/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Why 2025 Will See the Comeback of the ICO

    26/12/2024

    Animoca Brands Partnership Unveils Revolutionary Web3 Gaming Future

    06/08/2025

    VitaminAi and WildGo Partner to Unveil Web3 Pinball Game

    06/08/2025

    Shrapnel to Leave Avalanche in New Partnership with Gala Games

    05/08/2025

    Google to Pit Top AI Models Against Each Other in Live Chess Tournament

    05/08/2025

    Union Jack Oil Plans BTC Mining Using West Newton Gas Supply

    07/08/2025

    British Oil and Gas Company Union Jack Oil Enters Bitcoin Mining! Details Here

    07/08/2025

    How Will Donald Trump’s Tariffs Affect Bitcoin? There May Be a Danger That Is Not Being Discussed Much

    06/08/2025

    A Phenomenal 671 BTC Haul in July

    06/08/2025

    CFTC commits to clarify crypto regulation with Crypto Sprint initiative

    07/08/2025

    Apertum wins major lawsuit against Texas State Securities Board in landmark victory for DeFi

    07/08/2025

    Robert Kiyosaki Says Fed Is Finished as Crypto Era Rips Through the System

    07/08/2025

    Russian crypto holders get clarity on travel restrictions for digital assets

    07/08/2025

    How NEAR Protocol and Infinex are Redefining the DeFi User Experience

    07/08/2025

    Ethereum is Trading -8.20% Below Our Price Prediction for Aug 09, 2025

    07/08/2025

    Mag 7 Plans to ‘FOMO’ Into $650B Tech Investment Despite Trump’s U.S. Manufacturing Push

    07/08/2025

    Aave Unveils V3 Developer Toolkit to Slash DeFi Integration Time

    07/08/2025
  • MarketCap
NBTC News
Home»Mining»A deeper look at Riot’s ‘hostile’ bid to take over Bitfarms
Mining

A deeper look at Riot’s ‘hostile’ bid to take over Bitfarms

NBTCBy NBTC31/05/2024No Comments6 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


As Riot Platforms continues its quest to buy rival miner Bitfarms, others are apparently interested as well.

And with a Bitfarms committee focused on determining the mining firm’s best option, it may take time for negotiations around this “hostile” bid to play out.

April’s Bitcoin halving — an event during which per-block mining rewards dropped from 6.25 BTC to 3.125 BTC — was set to create an environment ripe for mergers and acquisitions given the big warchests of some and the increasing challenges for others.

While big deals between publicly traded companies have not yet occurred, that could be about to change.

A so far unsuccessful bid

Riot Platforms, which now holds a 10% stake in Bitfarms, proposed buying the rest of the company’s stock for $2.30 per share.

The bid — first proposed last month — reflects a 24% premium to Bitfarms’ one-month volume-weighted average share price on May 24, Riot noted in a Tuesday news release.

Read more: Riot reveals bid to buy Bitfarms, following CEO ouster

A committee of independent directors “carefully considered the proposal and determined it significantly undervalues the company and its growth prospects,” Bitfarms said in a Wednesday statement.

Riot did not respond to the committee after Bitfarms requested confidentiality and non-solicitation protections, Bitfarms added.

Peter Stoneberg, managing director at crypto advisory firm Architect Partners, has spent much of his career focused on the technology space. It’s a segment where “hostile bids” — seeking to take control of a company against management’s wishes — are less likely, he told Blockworks.

This is because the value in tech companies lies typically in the people. But Riot’s proposal comes as the company seeks a permanent CEO, highlighting that the takeover would be done despite the leadership, not because of it.

“Running the rigs is not like developing the next OpenAI platform,” Stoneberg said. “And so hostile bids that generally don’t work in technology could work in mining because the people are not as critical as [they are] in most tech companies.”

Riot could have competition

A merger between Riot and Bitfarms would create one of the largest bitcoin mining companies in the world.

The combined company would have 1 gigawatt of power capacity and 19.6 exahash per second of self-mining capacity off the bat, according to Riot. Together, the two miners have 15 facilities across the United States, Canada, Paraguay and Argentina, with up to 2.2 GW of total power capacity when fully developed.

BlocksBridge Consulting founder Nishant Sharma noted that the two companies mined a combined 676 BTC in April, behind only Marathon Digital, Core Scientific and CleanSpark.

“This [potential acquisition] might signal further mergers within the mining industry, as it undergoes consolidation due to heightened competition and the increasingly challenging environment following Bitcoin’s halving,” Sharma told Blockworks.

Read more: Buyers and sellers: How bitcoin miners are thinking about post-halving M&A

But it seems Riot is not the only one with a chance to acquire Bitfarms.

Bitfarms noted it has received “additional unsolicited expressions of interest.” It has a committee considering various options, Bitfarms added — from continuing to execute its business plan to selling the company.

Joe Flynn, an analyst at Compass Point Research and Trading, said in a Wednesday research note that Bitfarms’ international infrastructure and its potential to triple its hash rate to 21 EH/s by the end of 2024 make it an attractive target.

He said he expects potential competing offers from large well-capitalized miners like Marathon Digital and CleanSpark.

Marathon — with roughly $1.2 billion of combined cash and BTC on its balance sheet at the end of April — has previously said it would potentially use its “dry powder” for inorganic growth opportunities. CleanSpark CEO Zach Bradford said earlier this month the company intends to be “one of the most measured and active acquirers in the industry.”

Read more: Rival miners Marathon, Core Scientific each think they have an edge over peers

Spokespeople for Marathon and CleanSpark declined to comment on potential interest in acquiring Bitfarms.

If a bitcoin miner committee reviewing ways to ensure maximum shareholder value sounds familiar, that might be because Stronghold Digital Mining initiated similar efforts earlier this month.

The company said at the time that it hired financial and legal advisers to consider “the sale of all or part of the company,” or another transaction that involves some or all of its assets.

Read more: The move for an ‘undervalued’ bitcoin miner? Perhaps selling the company.

So what’s next?

Riot has signaled that it plans to call a special meeting of Bitfarms shareholders after the Bitfarms’ annual meeting on Friday.

Its goal would be to add “new, well-qualified and independent directors” to the Bitfarms board, Riot said in a Tuesday statement.

Riot would be able to call such a meeting given its 10% stake in the company, though the timeline for when such a meeting would be scheduled is unclear.

A Riot spokesperson declined to comment further.

Stoneberg said this call for such a meeting could be a form of “saber-rattling” by Riot.

Either way, he added: “As an outsider looking at the tea leaves, [Bitfarms is] doing everything right to put up a strong defense to Riot’s bid.”

As part of that effort, Bitfarms has named Moelis & Company as its financial adviser. Skadden, Arps, Slate, Meagher & Flom will be among those advising the miner on legal matters.

The 24% premium Riot is putting on Bitfarms is “pretty low,” Stoneberg argued — particularly in the case of a hostile takeover.

But that probably wasn’t Riot’s best offer, he added. And the Bitfarms committee is likely weighing the proposal against those of other potential bidders.

A Bitfarms spokesperson did not immediately return a request for further comment.

Bitfarms has also pointed out its projected 223% hash rate increase and 40% efficiency improvement in 2024.

“A lot of this is posturing with Bitfarms saying their opportunity is stronger independently and they have high growth plans,” Stoneberg added. “The test that the special committee has to consider is, are we worth more independently than we are with this 24% premium.”

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

Related Posts

Union Jack Oil Plans BTC Mining Using West Newton Gas Supply

07/08/2025

British Oil and Gas Company Union Jack Oil Enters Bitcoin Mining! Details Here

07/08/2025

How Will Donald Trump’s Tariffs Affect Bitcoin? There May Be a Danger That Is Not Being Discussed Much

06/08/2025

A Phenomenal 671 BTC Haul in July

06/08/2025
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

How NEAR Protocol and Infinex are Redefining the DeFi User Experience

07/08/2025

Ethereum is Trading -8.20% Below Our Price Prediction for Aug 09, 2025

07/08/2025

Mag 7 Plans to ‘FOMO’ Into $650B Tech Investment Despite Trump’s U.S. Manufacturing Push

07/08/2025
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.