Both Riot and Bitfarm stock prices have improved, with Bitfarms currently trading at $2.05, up 2.5% in the last 24 hours.
Riot Platforms Inc., a Bitcoin mining company, and Bitfarms, a Bitcoin mining company, have struck a settlement deal after months of contentious discussions following the former’s proposed takeover effort.
Bitfarms shareholders have scheduled a special meeting for November 6th in light of this new development. Some market participants are projecting moves with other equities, and both firms’ stock prices are currently outside the red zone.
Riot and Bitfarms Reach Agreement
Riot Platforms Inc. and Bitfarms announced in a September 23 press release that they had reached a settlement before the former’s special shareholders meeting in November. The purpose of this deal is to pave the way for Riot Platforms to complete their long-awaited takeover of the company.
The parties have highlighted the modifications to the board structure of Bitfarms as an important step toward the future. The agreement includes these modifications.
The press release announced Andres Finkielsztain’s resignation from the corporation’s Board of Directors and Amy Freedman’s appointment to the position, as well as her service on other committees.
The company will withdraw the previously submitted requisition and maintain a halt until the Bitfarms 2026 annual meetings, according to Riot. In addition, The Bitcoin Miner has the ability to acquire shares in the firm, given that it controls up to fifteen percent of the company’s shares.
At the Special Meeting, shareholders will be asked to approve an expansion of the Board from five members to six members, to elect an independent director recommended by the Board to serve as the sixth member of the Board, and to ratify the company’s shareholder rights plan that was implemented on July 24, 2024.”
Takeover Crisis
The Riot has stipulated that they will vote in favor of these things. In response to the hostile takeover effort, both Bitcoin miners engaged in a number of back-and-forth conversations. Before purchasing the firm’s stock in an effort to obtain control, Riot made an unsolicited offer of $950 million to acquire Bitfarms.
Riot made this move to gain control over the company. The Canadian mining giant declined the offer and criticized Riot for showing a lack of willingness to engage in meaningful dialogue.
According to people who are familiar with the subject, Bitfarm has launched an attempt to buy Stronghold Digital Mining in a transaction that is valued at 164 million dollars.
The agreement and market tone are improving both firms’ stock prices at the time of this publication.
BITF is currently trading at $2.05, representing a rise of 2.5% over the past twenty-four hours.
