Bitfarms, a global Bitcoin mining company, has rejected an acquisition proposal from Riot Platforms, stating that it undervalues the company. The proposal, which was received on April 22, 2024, offered $2.30 per Bitfarms common share in cash and Riot common stock. Bitfarms formed a Special Committee of independent directors to evaluate the proposal. The offer valued Bitfarms at around $950 million, representing a 24% premium over its one-month average share price. The proposed acquisition would have resulted in Bitfarms shareholders owning up to 17% of the merged entity. However, Bitfarms concluded that the offer undervalued the company and its future growth prospects. The company is now assessing its future direction, which could include continuing with its current business plan, entering a strategic business combination or transaction, or selling the company. This comes at a time of management turmoil for Bitfarms, as the company is searching for a new CEO following the departure of Geoffrey Morphy and is facing a lawsuit from him. Bitfarms believes that executing its growth plan will maximize shareholder value and intends to position itself for sustained growth and enhanced market position in the Bitcoin mining industry.
