Bitcoin miners Riot Platforms Inc. and Bitfarms have reached a settlement agreement after months of hostile negotiations following the former’s planned takeover bid. This development comes ahead of a Special Meeting of Bitfarms Shareholders on Nov 6. Both companies’ stock prices are out of the red zone with some market participants projecting movements with other stocks.
Riot and Bitfarms Reach Agreement
In a Sept 23 release, Riot Platforms Inc and Bitfarms disclosed a settlement ahead of the former’s special shareholders meeting in November. This agreement seeks a pathway to the long-stretching takeover bid by Riot Platforms. The agreement includes changes to the Board structure of Bitfarms described by parties as a significant step to the future.
Per the release, Andres Finkielsztain stepped down from the company’s Board while Amy Freedman was appointed as well as serving in other committees. On Riot’s part, it will withdraw its previously filed requisition and maintain a halt through the Bitfarms 2026 annual meetings. Riot also has the right to purchase shares in the company provided it holds up to 15% of its shares.
“At the Special Meeting, shareholders will be asked to approve an expansion of the Board from five members to six members, to elect an independent director nominated by the Board to serve as the sixth member of the Board, and to ratify the Company’s July 24, 2024, shareholder rights plan. Riot has agreed to vote in favor of these matters.”
A Takeover Crisis
The hostile takeover attempt led to several back-and-forths between both Bitcoin miners. Riot attempted to acquire Bitfarms through an unsolicited $950 million offer before buying the company’s stock in a bid to gain control. The Canadian mining giant rejected the offer criticizing Riot for refusing to engage constructively.
Bitfarms made a move to acquire Stronghold Digital Mining in a $164 million deal according to sources familiar with the matter. At press time, the stock prices of both companies are making gains on the heels of the agreement and wider market sentiment. BITF trades at $2.05, a 2.5% growth in the last 24 hours.
David Pokima
David is a finance news contributor with 4 years of experience in Blockchain Technology and Cryptocurrencies. He is interested in learning about emerging technologies and has an eye for breaking news. Staying updated with trends, David reported in several niches including regulation, partnerships, crypto assets, stocks, NFTs, etc. Away from the financial markets, David goes cycling and horse riding.
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