Riot sells $1.58 million Bitfarms shares, reducing its actual ownership stake to 14.3%

Gate News bot reported that the publicly listed Bitcoin miner Riot Platforms (RIOT) has stated that it has sold 1.75 million shares of competitor Bitfarms (BITF) stock, valued at approximately $1.58 million, as part of its ongoing review of its investment in Bitfarms. Previously, the company’s acquisition bid for Bitfarms failed, and its stake once rose to nearly 15%.

Riot Platforms sold these shares on June 9 at Nasdaq and other public markets, with a weighted average price of approximately $0.90 per share, and Riot Platforms’ actual ownership percentage decreased to 14.3%.

The hostile acquisition offer will be made public in May 2024, with Riot proposing to acquire Bitfarms at a price of $2.30 per share, but this plan was quickly rejected and abandoned the following month. Riot continued to purchase shares of its competitor to pressure the board into collaborating with Bitfarms. Bitfarms then implemented a shareholder rights plan, known as a “poison pill,” to prevent Riot from acquiring the company.

Riot emphasizes that it will continue to assess its position in Bitfarms based on a range of changing factors. These factors include potential discussions with Bitfarms management, the company’s strategic development direction, and broader market conditions. Riot states that it may increase or decrease its holdings in the future based on these factors.

Bitfarms stock price rose by 4% in pre-market trading to $0.96. Riot’s stock price increased by 0.49% to $10.17.

Source: CoinDesk