Riot Sells Bitfarms Shares After Failed Takeover, Keeps Strategic Options Open

Bitcoin mining firm Riot Platforms (RIOT) has sold 1.75 million shares of competitor Bitfarms (BITF) for approximately $1.58 million, signaling a strategic reassessment following its failed acquisition attempt. The sale, executed on June 9 through Nasdaq and other open markets, fetched an average price of around $0.90 per share and reduced Riot’s stake in Bitfarms from nearly 15% to 14.3%.

Riot’s bid to acquire Bitfarms began in May 2024, when it publicly proposed a $2.30 per share offer, which Bitfarms swiftly rejected. Despite the rejection, Riot continued to accumulate shares in an effort to pressure the board into negotiations. In response, Bitfarms enacted a shareholder rights plan, or “poison pill,” designed to thwart any hostile takeover.

Riot emphasized it is still actively reviewing its investment in Bitfarms. The company stated it may either increase or decrease its holdings based on multiple factors, including Bitfarms’ strategic direction, market trends, and any forthcoming dialogue with Bitfarms' management team.

As of the latest trading update, Bitfarms shares climbed 4% in pre-market activity to $0.96, while Riot shares saw a modest 0.49% gain to $10.17.

This development highlights the ongoing tension and strategic positioning within the Bitcoin mining sector, especially amid market volatility and consolidation efforts. Investors will be watching closely to see if Riot makes another move or if Bitfarms strengthens its defenses further.