Bitcoin miner Riot Platforms raises stake in rival Bitfarms to 18.9%

(Reuters) – Bitcoin mining company Riot Platforms said on Tuesday it increased its stake in rival Bitfarms to 18.9%.

Riot purchased 1 million common shares of Bitfarms on Tuesday, representing approximately 0.22% of Bitfarms’ issued and outstanding common shares.

With this acquisition, the total number of Bitfarms shares owned by Riot reached approximately 85.3 million.

Bitfarms had previously announced that its co-founder and chairman Nicolas Bonta, one of three board members that Riot wanted to replace, would be leaving the company immediately.

The two companies have been at odds since April, after Riot made a $950 million offer to acquire Canadian-based Bitfarms.

Bitfarms said the offer significantly undervalued it and that it had adopted a “poison pill” to ward off a hostile takeover attempt. A poison pill refers to shareholder rights plans used by company boards to thwart hostile takeover bids.

Riot withdrew its offer at the time, but is now seeking three seats on Bitfarms’ board of directors and said it was “ready to discuss” a possible transaction with the reconstituted board.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Pooja Desai)