Riot Platforms Seeks Board Control at Bitfarms in Acquisition Push

Riot Platforms, a Bitcoin mining company, is attempting to gain control of the board at Bitfarms, a competitor, in a bid to acquire the company. Riot, which already owns nearly 15% of Bitfarms, has made an unsolicited offer to purchase the company for $950 million, but its initial approach was rejected. After withdrawing its $2.30-per-share bid, Riot is now seeking to replace three members of Bitfarms' board, including the chairman and interim CEO, Nicolas Bonta, director Andrés Finkielsztain, and any successors to co-founder Emiliano Grodzki. Riot argues that a change in Bitfarms' board is necessary to facilitate honest negotiations. The move comes amid a trend of consolidation in the Bitcoin mining sector, driven by the recent Bitcoin halving, which has reduced miners' profit margins. The Bitcoin halving has led to an estimated $10 billion in annual revenue losses for miners. This situation has prompted larger, cash-rich companies to acquire smaller competitors to maintain their position in the market. Riot operates one of the largest Bitcoin mining facilities globally, while Bitfarms is also seeking strategic alternatives following multiple unsolicited expressions of interest.