Riot Platforms Increases Stake in Rival Bitcoin Miner Bitfarms to 18.9%

Riot Platforms has purchased an additional 1 million shares of rival bitcoin miner Bitfarms, increasing its ownership to 18.9% of outstanding shares.

Riot Platforms has acquired an additional 1 million shares of rival bitcoin miner Bitfarms (NASDAQ:BITF), bringing its total ownership to 18.9% of outstanding shares.

The move advances Riot's bid to take over Bitfarms, which has faced leadership changes and upcoming shareholder votes on the matter.

Riot now owns over 85.29 million shares of Bitfarms, with the latest acquisition—reported by the U.S. Securities and Exchange Commission on Friday—amounting to about $2.28 million at the current market price.

The latest development comes a day after Bitfarms co-founder and former chairman Nicolas Bonta stepped down from the board of directors.

Riot had nominated three independent directors to the Bitfarms board in July to replace Bonta and others.

Bitfarms has scheduled a special shareholder meeting for Oct. 29 to vote on reconstituting its board of directors, following Riot Platforms' requisition for the meeting on June 24.

Both Riot and Bitfarms have faced financial challenges in recent quarters. Bitfarms reported a net loss of $27 million in its latest financial results, while Riot booked a net loss of $84.4 million in the second quarter, compared to a $27.4 million loss in the same period last year.

Despite these setbacks, both miners saw increases in bitcoin production during July, with Riot and Bitfarms reporting 45% and 34% rises, respectively.

The takeover bid highlights the consolidation trend in the competitive crypto mining sector. As larger players like Riot seek to expand their influence, smaller operations may face pressure to merge or be acquired.

This shift could lead to a more concentrated and efficient mining landscape, though it may raise concerns about centralization within the industry. Recently, examples of such merger and acquisition activities in the crypto industry were examined by Crypto Briefing, covering Bakkt's restructuring strategies.