![Riot Platforms becomes largest Bitfarms shareholder with 18.9% stake Riot Platforms becomes largest Bitfarms shareholder with 18.9% stake](https://static.cryptobriefing.com/wp-content/uploads/2024/04/05153217/follow-us-on-google-news.png)
Riot Platforms becomes largest Bitfarms shareholder with 18.9% stake
Key Takeaways
- Riot Platforms has become the largest shareholder of Bitfarms with an 18.9% stake.
- Both Riot and Bitfarms have reported increased bitcoin production despite financial losses.
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Riot Platforms has purchased an additional 1 million shares of rival bitcoin miner Bitfarms, increasing its ownership to 18.9% of outstanding shares. The move advances Riot’s bid to take over Bitfarms amid leadership changes and upcoming shareholder votes.
Riot Platforms now owns over 85.29 million shares of Bitfarms, cementing its position as the company’s largest shareholder. This latest acquisition, valued at approximately $2.28 million, comes just a day after Bitfarms co-founder and former chairman Nicolas Bonta stepped down from the board of directors.
The leadership shakeup continues as Riot nominated three independent directors to the Bitfarms board in July to replace Bonta and others. Bitfarms has scheduled a special shareholder meeting for October 29 to vote on reconstituting its board of directors, following Riot Platforms’ requisition for the meeting on June 24.
Financial challenges, rivalry
Both companies have faced financial challenges in recent quarters. Bitfarms reported a net loss of $27 million in its latest financial results, while Riot booked a net loss of $84.4 million in the second quarter, compared to a $27.4 million loss in the same period last year. Despite these setbacks, both miners saw increases in bitcoin production during July, with Riot and Bitfarms reporting 45% and 34% rises respectively.
The takeover bid highlights the consolidation trend in the competitive crypto mining sector. As larger players like Riot seek to expand their influence, smaller operations may face pressure to merge or be acquired. This shift could potentially lead to a more concentrated and efficient mining landscape, though it may raise concerns about centralization within the industry. Recently, examples of such merger and acquisition activities in the crypto industry was examined by Crypto Briefing, covering Bakkt’s restructuring strategies.
Riot Platforms’ increased stake in Bitfarms to 18.9% signals its intent to consolidate power in the bitcoin mining sector amid ongoing leadership changes and financial challenges for both companies.
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Author: Vince Dioquino