Bitfarms says Riot Platforms buyout offer is too low as it weighs potential sale

By Steve Gelsi

Stock cools off after it pours cold water on unsolicited purchase offer from larger rival

Bitfarms Ltd. on Wednesday said it rejected a buyout offer from larger rival Riot Platforms Inc. because it "significantly" undervalues the company, but it's weighing other bids from prospective buyers.

Bitfarms (BITF) (CA:BITF) said it carefully considered the proposal from Riot Platforms (RIOT), but the price of $2.30 a share, or about $950 million, does not recognize its growth prospects.

Bitfarms stock fell by 1.1% on Wednesday, after gaining 5.2% in the previous session. Riot Platforms stock fell 1.8%.

The Toronto-based Bitcoin mining company said it has also received other unsolicited expressions of interest and that it's conducting a strategic view with investment bank Moelis & Co.

Bitfarms said it will weigh whether to remain an independent company and execute its plans, or consider the sale of the company or a "strategic business combination."

Riot Platforms said Tuesday it's currently the largest shareholder of Bitfarms with a stake of 9.25% and that it approached Bitfarms about a deal to create "the world's largest publicly-listed bitfarm mining company."

Riot Platform said it plans to request a special meeting of Bitfarm shareholders to add independent directors to Bitfarm's board.

-Steve Gelsi

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05-29-24 1302ET

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