Bitfarms Rejects Takeover Proposal from Riot Platforms

In May, Bitfarms reported a notable 42% reduction in Bitcoin earnings compared to April, pulling in 156 BTC. This drop mirrors the company’s post-halving adjustment period

Bitfarms (NASDAQ:BITF) shares rose 4% on Friday after rejecting an acquisition offer from Riot Platforms (NASDAQ:RIOT), highlighting a potential consolidation in the crypto mining sector.

What Happened: Bitfarms shares closed up 4.14% on Friday at $2.33. The stock is down about 18% year to date.

Riot Platforms now owns a 9.25% stake in Bitfarms, making it the largest shareholder in the company.

Bitfarms shares have traded as high as $6.85 and as low as $1.60 over the past year.

The Bitfarms Impact: Bitfarms reported a notable 42% reduction in Bitcoin earnings in May compared to April, pulling in 156 BTC.

This drop mirrors the company’s post-halving adjustment period, which also saw a 45% decrease in BTC per average EH/s.

The first full month after the Bitcoin halving proved challenging, resulting in a decline in daily earnings to about $340,000 from the cryptocurrency mined.

Ben Gagnon, Chief Mining Officer, reported the addition of 25,600 miners this year, with 23,600 already operational.

This expansion is set to increase their hashing power to 12 EH/s by June, showing the company's commitment to growth despite market challenges.

The company also reported an increase in total energy consumption to an average of 115 MW, up from 108 MW in April.

Gagnon also noted that the company experienced a rise in mining difficulty and a decrease in BTC price, which impacted earnings.

Despite these challenges, Bitfarms continues to expand its operations and adjust to the changing market landscape.