Bitfarms Ltd. found itself embroiled in a board dispute with Riot Platforms, Inc., with both companies at odds over Riot’s attempted acquisition of Bitfarms. Bitfarms accused Riot of pursuing the acquisition for the benefit of its own shareholders rather than Bitfarms’, leading to a heated exchange of criticisms between the two industry giants. Riot positioned its actions as an attempt to improve corporate governance at Bitfarms, while Bitfarms maintained that its recent board and leadership changes were made independently to benefit its shareholders. The conflict escalated with Riot declining to enter a non-disclosure agreement or propose a revised acquisition offer, opting instead for public criticism and actions deemed harmful to Bitfarms’ shareholders.
Despite the ongoing dispute, Bitfarms continued to make strategic moves to enhance its operational capabilities. The company announced the acquisition of Stronghold Digital Mining in an effort to diversify its energy portfolio and expand its operational capacity in the U.S. Bitfarms intends to leverage Stronghold’s power capacity, potentially increasing its overall energy capacity to over 950 MW, with nearly half of it based in the U.S. by the end of 2025. Riot criticized Bitfarms’ acquisition strategy, alleging that the moves did not align with shareholder value. Bitfarms defended its actions, positioning the Stronghold acquisition as a value-enhancing opportunity that aligns with its long-term strategic objectives and operational focus in the U.S. market.
As the conflict between Bitfarms and Riot intensified, Bitfarms published its August 2024 production and operations update, showcasing its continued growth and progress. The company announced plans to acquire Stronghold Digital Mining, which would increase its 2025 energy portfolio by 47% and operational hashrate to 11.3 EH/s. Bitfarms also reported earning 233 BTC in August 2024, increasing its HODL to 1,103 BTC. Despite the challenges posed by the ongoing dispute with Riot, Bitfarms remained focused on expanding its operational capacity and enhancing shareholder value through strategic acquisitions and operational improvements.
In response to Riot’s criticisms and attempts to acquire Bitfarms at a discounted price, Bitfarms issued a strong rebuttal, asserting that its recent board and leadership changes were made independently to benefit all shareholders. Bitfarms emphasized that the upcoming special meeting was not about corporate governance as Riot positioned it, but rather about Riot’s attempt to acquire Bitfarms for its own benefit. The company rejected Riot’s claims and accusations, highlighting its commitment to enhancing shareholder value and ensuring the right team is in place to drive Bitfarms’ growth and success. Despite the pressure from Riot and the public criticisms, Bitfarms remained steadfast in its position and continued to pursue strategic initiatives to strengthen its position in the market.
While the conflict between Bitfarms and Riot continues to escalate, Bitfarms remains focused on its long-term growth and operational objectives. The company’s acquisition of Stronghold and commitment to expanding its energy portfolio and operational capabilities demonstrate its strategic vision and determination to enhance shareholder value. Bitfarms’ resilience in the face of public criticisms and attempts to undermine its initiatives showcases its commitment to driving growth and success in the digital asset industry. As Bitfarms evaluates the amended requisition proposal and navigates the ongoing board dispute, the company remains dedicated to pursuing strategic opportunities and delivering value to its shareholders in the dynamic world of digital assets.
