Bitfarms (NASDAQ:BITF) stock is in the news on Monday on an update to Riot Platforms’ (NASDAQ:RIOT) plan to take over the cryptocurrency mining company.
Riot Platforms has withdrawn its previous offer to acquire all outstanding shares of BITF stock for $2.30 each. This comes after the offer was rejected by the Bitfarms board.
However, Riot Platforms isn’t giving up on its plan to combine with Bitfarms. Instead, the company is bypassing the board to speak directly to shareholders of BITF stock. This has it calling for a special shareholder meeting.
At this meeting, Riot Platforms is requesting the replacement of three sitting Bitfarms board members with three independent directors. The company is able to make these nominations as it is the largest investor in Bitfarms with a 14.9% stake in the company.
Riot Platforms said the following about its plan in a news release:
“The bottom line is this: over the course of more than a year of attempting to engage constructively with the Bitfarms Board regarding a potential combination of Bitfarms and Riot, it has become evident to Riot that good faith negotiations simply will not be possible until there is real change in the Bitfarms boardroom. The culture of the current Bitfarms Board is founder-driven, and Riot believes it prioritizes the interests of individual directors over what is best for Bitfarms and its shareholders.”
How This Affects BITF Stock Today
News of the actions by Riot has shares of BITF stock down 6.1% as of Monday morning. This comes with more than 12 million shares traded. That’s still below its daily average of about 22 million shares.
RIOT stock is also slipping slightly on Monday morning.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
