Bitcoin Mining Company Riot Platforms Sues Bitfarms For This!

JAKARTA - Two Bitcoin mining giants, Riot Platforms and Bitfarms, are involved in heated power battles. These two companies, which have long stood as pioneers in the crypto industry, are now on the verge of conflict that could determine the future direction of digital asset mining.

Earlier this week, Bitfarms, known for its large-scale Bitcoin mining operations, took drastic steps by adopting a poison election' policy. The policy was designed to prevent shareholders from accumulating more than 15% of the company's shares, a clear maneuver aimed at deterring Riot Platforms from aggressive acquisition efforts.

Riot Platforms, which has held a 12% stake in Bitfarms, has not remained silent. With a careful strategy, they increased share ownership to 13.1% through buying nearly 6 million shares in the open market over the past week. This move is a direct response to the controversial Bitfarms policy.

Quoted from TheBlock, Jason Les, CEO of Riot Platforms, firmly criticized Bitfarms' defensive actions. "We expect constructive dialogue, but what we accept is the Poison Pill policy which is carried out unilaterally with an unnatural threshold," Les said. This criticism marks the growing tension between the two entities that are both involved in the same industry.

The conflict reached a climax when Riot Platforms, in the previous month, made an acquisition offer worth around $950 million to take over entire Bitfarms shares, which the company last rejected.

This situation is getting more complicated with the internal chaos that hit Bitfarms. In May, Bitfarms CEO Geoffrey Morphy was forced to leave his position amid a dispute over corporate governance. This incident became fuel for Riot Platforms to strengthen their efforts to secure control over Bitfarms.

Les emphasized, "We are determined to address the company's serious governance issues at Bitfarms and ensure that shareholders have a vote in determining the company's future direction."

In the stock market, Bitfarms showed an increase of 7.8%, with a share price of 2.45 US Dollars (approximately IDR 39,849). This increase may be an indication of market reactions to the ongoing dynamics between these two companies.