On Tuesday, Riot announced that it had made an offer to acquire Bitfarms last month, but Bitfarms rejected the offer.
Riot said it has now accumulated a 9.25% stake in Bitfarms to become the company's largest shareholder and is offering to buy it for $2.30 per share.
Bitfarms (NASDAQ: BITF) stock jumped nearly 8% on the news, currently trading at $2.18 per share.
“We are disappointed to learn that the board of directors of Bitfarms rejected our attractive offer without engaging in genuine discussion. While we have long respected Bitfarms' business and management team, we are confident that Bitfarms shareholders will agree that this proposal represents a much more attractive option than Bitfarms' independent journey”
Riot Executive Chairman Benjamin Yi said
Riot CEO Jason Less said Bitfarms mismanaged its business, especially after the recent firing of Bitfarms CEO Geoffrey Morphy.
“We are very concerned that the founders on Bitfarms' board of directors — Nicolas Bonta and Emiliano Grodzki — may not be acting in the best interests of all Bitfarms shareholders,” he said, adding that Morphy's sudden dismissal and the former director's lawsuit are raising serious questions.
Bitfarms fired Morphy this month after he filed a lawsuit against the company, seeking $27 million in compensation for breach of contract.
VIC Crypto compiled
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