Riot Platforms Bitcoin Mining Giant Adds Its Share Collection On Bitfarms

Riot Platforms, the leading Bitcoin mining company. (Photo; Doc. Blockhcain News)

JAKARTA - Riot Platforms has increased its share ownership in Bitfarms Ltd., a Bitcoin mining company from Canada, to 18.9%. This move strengthens Riot's position as one of the main shareholders in the company. This increase in ownership came after Riot bought an additional 1 million shares of Bitfarms' common.

Riot revealed that, the purchased shares were obtained through regular market transactions on the Nasdaq Stock Market and other open market trading at an average price of around US$2.28 (Rp36,480) per share. With this transaction, Riot's total ownership has now reached 85.3 million shares, an increase from the previous 84.3 million, according to a Finance Magnates report.

Riot's strategic move comes amid growing tensions between the two companies. The tension began in April when Riot submitted an acquisition offer of $950 million to Bitfarms. The offer was rejected because it was considered too low, and Bitfarms then adopted a "poison election" strategy to prevent unwanted acquisitions.

Although Riot withdrew his acquisition offer, the company is still trying to influence Bitfarms management. Riot even called for a special shareholder meeting last June to propose replacing several directors with independent candidates. These efforts began to bear fruit with the resignation of Nicolas Bonta, co-founder and chairman of Bitfarms, who was previously the target of Riot's replacement.

Riot's strategy is part of a bigger plan to influence Bitfarms' strategic direction. Riot pointed out that it will continue to evaluate its investment and may take further action, including adjusting positions or proposals for additional council changes.

Beyond the acquisition of Bitfarms, Riot is also expanding its operations. The company recently purchased Block Mining in Kentucky for $92.5 million, increasing its hash rate capacity and expanding its geographic presence in the new energy market. In addition, Riot reported an increase in Bitcoin production by 45% in July, generating 370 BTC despite the stagnant Bitcoin price.