Riot Sells $1.58M of Bitfarms Shares as Part of Investment Review

What to know:

Bitcoin miner Riot Platforms (RIOT) said it sold 1.75 million shares of rival Bitfarms (BITF) for about $1.58 million as part of a continuing review of its investment in the company following an  unsuccessful takeover bid that saw its stake in the company rise to almost 15%.

The shares, sold on June 9 over the Nasdaq and other open markets, fetched a weighted average price of about $0.90 per share and reduced Riot's beneficial ownership to 14.3%,  the company said .

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The hostile takeover bid became public in May 2024, with Riot  offering to buy Bitfarms  for $2.30 per share, an approach that was  swiftly rejected  and abandoned the following month. Riot continued to buy its rival's shares to exert pressure on the board to engage with the miner. Bitfarms subsequently implemented a shareholder rights plan or "poison pill" to deter Riot from buying the company.

Riot emphasized that it remains committed to evaluating its position in Bitfarms based on a number of evolving factors. These include potential discussions with Bitfarms’ management, the company’s strategic trajectory, and broader market conditions. Riot said it may increase or decrease its holdings in the future depending on such considerations.

Bitfarms stock rose 4% in pre-market trading to $0.96. Riot rose 0.49% to $10.17.