Bitcoin miner Riot Platforms increases stake in rival Bitfarms to 18.9%

Riot acquired 1 million common shares of Bitfarms on August 13, representing about 0.22 per cent of issued and outstanding Bitfarms common stock.

Bitcoin miner Riot Platforms Inc (RIOT.O) on Monday said it had increased its stake in rival Bitfarms Ltd (BITF.TO) to 18.9%, a move that comes amid a takeover battle between the two companies.

Riot said it acquired an additional 1 million common shares of Bitfarms on Aug. 13, representing about 0.22% of issued and outstanding Bitfarms common stock.

The acquisition takes the total count of Bitfarms shares owned by Riot to about 85.3 million.

Earlier on Monday, Bitfarms said its co-founder and chair Nicolas Bonta, one of the three board members top shareholder Riot sought to replace, would leave the company immediately.

The two companies have been locked in a dispute since April, when Riot made an unsolicited C$950-million ($740.2-million) offer to acquire Bitfarms, which operates crypto mining farms in Canada.

Bitfarms said the bid undervalued it significantly and adopted a “poison pill” to fend off any attempt at a hostile takeover. A poison pill refers to shareholder rights plans used by corporate boards to thwart hostile takeover bids.

Riot withdrew its offer at the time but is now seeking three seats on the Bitfarms board and has said it is “ready to engage” with the reconstituted board on a potential transaction.