Riot buys 10.23m more Bitfarms shares in July, increasing stake to 15.9%

Riot Platforms has stepped up its efforts to acquire Bitfarms, purchasing more than 10 million shares this month.

Bitcoin (BTC) mining company Riot currently owns 71.56 million Bitfarms shares worth $159.1 million, according to a July 31 filing with the U.S. Securities and Exchange Commission.

This means Riot now owns a 15.9% stake in Bitfarms. According to the SEC filing, Riot purchased Bitfarms shares throughout July at prices ranging from $2.48 to $2.84 per share.

Riot is scheduled to announce earnings after hours on July 31. The company’s stock is currently trading at $10.61 per share.

The war between Riot and Bitfarms

Riot announced a $950 million takeover bid for Bitfarms in late May, claiming that Bitfarms’ founders were not acting in the best interests of all shareholders. They noted that their offer was rejected by Bitfarms’ board without significant buy-in.

Bitfarms responded by stating that Riot’s offer “significantly underestimates” the company’s growth prospects.

Bitfarms subsequently implemented a shareholder rights plan, often referred to as a “poison pill,” to protect the strategic review process from hostile takeover attempts by Riot Platforms.

Riot held 11.62% of Bitfarms shares at the time of the acquisition offer, and Bitfarms’ board of directors unanimously supported the poison pill plan in order to ensure that its shareholders’ interests were protected.