Riot proposes hostile takeover of Toronto-based Bitfarms to create world’s largest publicly listed Bitcoin miner

, revealing in a filing with securities regulators it had made a non-binding offer of US$2.30 a share, or US$950-million in total, in a letter to the board on April 22.Just days after the bitcoin halving event – which reduced the rate at which new coins are created – Riot made a private offer to buy Bitfarms that they say the company “swiftly” rejected.

The company intends to request a special meeting after Bitfarms annual general meeting on May 31 to add new independent directors to the board.Riot offered shareholders a mix of cash and Riot common stock, which would give Bitfarms’s shareholders 17 per cent of the combined company’s stock. The proposal also offered a 24-per-cent premium to Bitfarms’s one-month, volume-weighted average share price as of May 24.

Riot said they want Bitfarms to be their international arm as they pursue a global expansion. The company’s statement noted the combined firm would have 15 facilities across the United States, Canada, Paraguay and Argentina. Riot added that the acquisition is also beneficial for the two companies because it provides geographical diversification, and Bitfarms would have access to Riot’s strong balance sheets.morning after Riot made its letters public before markets opened. The stock ended the day flat at US$10.34.

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