Bitfarms refutes ‘deceptive claims’ made by Riot Platforms in open letter

  • September 23, 2024
Bitfarms refutes ‘deceptive claims’ made by Riot Platforms in open letter

Bitfarms refutes ‘deceptive claims’ made by Riot Platforms in open letter Assad Jafri · 3 weeks ago · 2 minutes checked out

The declaration follows Riot slammed Bitfarms’ strategy to obtain Stronghold Digital in an open letter to investors on Sept. 3.

2 minutes checked out

Upgraded: Sep. 4, 2024 at 9:53 pm UTC

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Bitcoin miner Bitfarms provided a declaration resolving what it called deceptive claims by competing Riot Platforms in the middle of continuous stress over the latter’s changed acquisition proposition.

In the Sept. 4 news release, Bitfarms highlighted that Riot’s proposition is not about business governance however rather an effort to get it at a reduced rate. The company even more mentioned that the relocation would mainly benefit Riot investors instead of Bitfarms’ own financiers.

The declaration follows Riot slammed Bitfarms’ strategy to obtain Stronghold Digital in an open letter to investors on Sept. 3.

Modifications made individually

Bitfarms declared that Riot has actually declined to participate in significant conversations, consisting of decreasing to sign a basic non-disclosure contract or send a modified proposition. Rather, Riot has actually done something about it that Bitfarms claims have actually weakened the interests of its investors.

The company likewise clarified that the current management modifications were made “individually of Riot’s participation” and executed to enhance investor worth. It even more highlighted the credentials of its management group and questioned the prospective worth that Riot’s board candidates might provide.

Bitfarms likewise highlighted that its suggested acquisition of Stronghold as part of its continuous method to diversify energy gain access to and broaden its existence in the United States. The acquisition, which might amount to 307 megawatts (MW) of power capability, lines up with Bitfarms’ objective of growing its energy portfolio to over 950 MW by the end of 2025, with almost half of that capability based in the United States.

Bitfarms specified that the Board would examine and react to Riot’s modified appropriation proposition in due course however encouraged investors that no instant action was needed. The business repeated its dedication to improving investor worth in both the brief and long term.

Hostile takeover

The disagreement in between the 2 companies dates started previously this year when Riot initially made an unsolicited deal to obtain Bitfarms. The latter declined this overture, mentioning issues about the terms of the acquisition, which it thought underestimated its company.

Riot, undeterred, continued its pursuit and started promoting modifications in Bitfarms’ business governance, recommending that enhancements in management and tactical instructions were required. It likewise chose its own slate of prospects for Bitfarms’ board, arguing that fresh viewpoints were required to line up the business’s method with market needs.

Bitfarms has actually regularly refuted Riot’s claims, asserting that its board and management have actually been taking independent actions to enhance the business’s monetary position and development potential customers.

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