After acquiring a 9.25% stake to become a significant shareholder in the business, Riot Platforms (RIOT) has made an attempt to purchase Bitfarms (BITF), a fellow bitcoin miner. Riot stated on Tuesday that the Castle Rock, Colorado-based miner proposed to purchase all outstanding BITF shares for $2.30 apiece, which represents a 24% premium to their one-month volume weighted average price as of May 24. Riot noted that if the plan is implemented, the combined company would be the biggest bitcoin miner globally.
Riot made their idea known in private last month. The lawsuit filed by recently departed CEO Geoffrey Morphy and Bitfarms’ rejection of the bid were mentioned by Riot as “raising serious questions about whether certain directors are committed to acting in the best interests of all shareholders.” After Riot’s announcement, Bitfarms’ shares were up about 6% at $2.13 as of 14:00 UTC.