A competition for ultimate control intensifies between two Bitcoin mining enterprises. Bitfarms, a Canadian Bitcoin miner, accuses Riot Platforms based in Colorado of initiating a hostile acquisition.

In an initial bid on May 28, Riot Platforms proposed a buyout offer of $950 million, exceeding Bitfarms’ one-month volume-weighted average share price as of May 24, 2024.

However, Bitfarms’ stakeholders expressed dissatisfaction at the prospect of surrendering more than 15% of their ownership in a potential corporate merger. Subsequently, in June, Riot Platforms disclosed the acquisition of around six million common shares of Bitfarms for $111 million.

Building on its existing stake, Riot acquired a 13.1% interest in Bitfarms. Bitfarms criticized this action as an endeavor to disrupt the acquisition process's integrity. Bitfarms conveyed that:

“It is evident that Riot’s objectives do not align with those of Bitfarms’ shareholders. Instead of engaging transparently in the Special Committee’s procedures, Riot is targeting Bitfarms’ Board and corporate governance to advance its undervalued offer and interfere with the Strategic Alternatives Review Process.”

Bitfarms refrained from immediate comments in response to Cointelegraph's inquiry.

The Bitfarms special committee consists of independent directors who evaluate the unsolicited offers and concluded that Riot Platforms' proposal significantly underestimates Bitfarms and is not beneficial for shareholders.

On June 10, Bitfarms implemented a shareholder rights plan to thwart an unsolicited takeover bid from Riot Platforms.

Bitfarms believed that its counterarguments were in the shareholders’ best interests and accused Riot of trying to hasten the decision-making process.

Bitfarms manages twelve Bitcoin mining facilities across four nations: Canada, the United States, Paraguay, and Argentina. In a recent development, Bitfarms announced the departure of its former CEO, Geoffrey Morphy, who took legal action against the mining company.

Nicolas Bonta currently serves as the interim president and CEO until a successor to Morphy is appointed. Les urged the board to dismiss Bonta, attributing direct responsibility to him for Bitfarms' inadequate corporate governance practices.