Riot Platforms Doubles Down on Bitfarms (BITF) Stock With 14% Stake


  • Riot Platforms (RIOT) continues to seek a takeover of rival Bitfarms (BITF).
  • Riot now owns 14% of Bitfarms’ common stock.
  • The market cap of Bitfarms is now well above Riot’s initial offer.
RIOT stock - Riot Platforms Doubles Down on Bitfarms (BITF) Stock With 14% Stake

Source: rafapress /

Bitcoin (BTC-USD) miner Riot Platforms (NASDAQ:RIOT) is continuing its effort against rival Bitfarms (NASDAQ:BITF), buying more stock and seeking a shareholder meeting to nominate its own directors.

Bitfarms, based in Toronto, has rejected Riot’s $950 million takeover bid and is expanding its U.S. operations into Pennsylvania.

Meanwhile, speculators pushed BITF stock price to $3.03 per share overnight, the market capitalization rising to $1.25 billion. RIOT stock was due to open at $11.05, a market cap of $3.2 billion.

Servers at Dawn

Shares of both Bitcoin miners have been hammered so far in 2024. Riot is down by almost 29%. Bitfarms’ price had been nearly cut in half before Riot began its takeover effort. It is now down just 1% on the year.

Bitfarms sent out a press release accusing its larger rival of disrupting its strategic review process. The release said it “remains committed to maximizing value for all shareholders” and did not outright reject Riot’s advances.

However, Bitfarms also adopted what’s called a “poison pill” that would have it issue new shares once Riot holds 15% of its common stock.

Both companies mine Bitcoin using server farms that calculate answers to Bitcoin’s cryptographic puzzle to earn virtual currency. The price of Bitcoin is up 52% in 2024 and was trading June 14 at over $67,000.  

Riot had revenue of $280 million last year, while Bitfarm had revenue of just under $200 million. But it’s in their Bitcoin holdings that their value lies. Riot owns 9,084 Bitcoin by a recent count, worth a little over $608 million. Bitfarms owns about 3,349 Bitcoin after selling half its holdings recently to reduce debt.

Bitfarms considers the Riot offer a “low ball bid.”

BITF and RIOT Stock: What Happens Next?

Riot will have to raise its bid to have any chance of success. The company had only $688 million in cash at the end of March. Maybe it can sell some Bitcoin.

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On the date of publication, Dana Blankenhorn 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 Publishing Guidelines.

Dana Blankenhorn has been a financial and technology journalist since 1978. He is the author of Technology’s Big Bang: Yesterday, Today and Tomorrow with Moore’s Law, available at the Amazon Kindle store. Tweet him at @danablankenhorn, connect with him on Mastodon or subscribe to his Substack.

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