Riot and Bitfarms Reach Settlement in Hostile Bitcoin Mining Takeover Bid
Riot Platforms and Bitfarms have reached a settlement in Riot’s hostile takeover attempt, ending a contentious chapter in the Bitcoin mining sector. The agreement comes ahead of Bitfarms’ special shareholder meeting on November 6 and follows Riot’s acquisition of 19.9% of Bitfarms shares, valued at $180 million as of August.
The conflict emerged as part of a larger trend of consolidation within the Bitcoin mining industry, accelerated by the recent Bitcoin halving. Key changes include the resignation of Andrés Finkielsztain from Bitfarms’ board and the immediate appointment of Amy Freedman, who was previously nominated by Riot.
As part of the settlement, Riot agreed to withdraw its June 24 requisition for a special shareholder meeting and to abide by customary standstill provisions. These provisions restrict Riot from acquiring more than 20% of Bitfarms without board approval, except through a formal takeover bid compliant with Canada’s National Instrument 62-104, which protects shareholder rights in takeover scenarios.
Key changes include the resignation of Andrés Finkielsztain from Bitfarms’ board
Riot Nominee Amy Freedman
Bitfarms will hold a shareholder meeting in November to vote on expanding its board from five to six members and ratifying a shareholder rights plan, with Riot indicating support for both proposals. The settlement marks a pause in the takeover bid, but Riot retains rights to increase its stake under certain conditions, ensuring the situation remains fluid as both companies navigate the evolving Bitcoin mining landscape.
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