Bitfarms Fires Back at Riot Platforms’ Criticism, Accuses Rival of Self-Interest in Board Dispute

Bitfarms Ltd. issued a strong rebuttal on September 4 to Riot Platforms’s criticisms, expressing that Riot’s intentions are driven by self-interest in an ongoing board dispute.

The conflict between these two industry giants centers around Riot’s attempt to acquire Bitfarms, which Bitfarms claims is being pursued for the benefit of Riot’s shareholders rather than those of Bitfarms.

The escalating tension has reached new heights as both companies vie for control and influence over Bitfarms’ future. Bitfarms accuses Riot of spreading misleading claims and undermining its initiatives, such as acquiring Stronghold.

Bitfarms Rebutted All Accusations, Throw Criticism at Riot In Response

Riot framed this move as an effort to improve corporate governance at Bitfarms. Still, Bitfarms argues that Riot’s true motive is to acquire the company at a discounted price to serve its shareholders.

Bitfarms has emphasized that its recent board and leadership changes were made independently, specifically to benefit Bitfarms’ shareholders.

Bitfarms today issued a statement in response to Riot Platforms, Inc. Read an excerpt here:

“The upcoming special meeting is not about corporate governance, as Riot has repeatedly positioned it to be, but rather about Riot attempting to acquire Bitfarms at a discounted price… pic.twitter.com/TbGFqT5xzr

— Bitfarms (@Bitfarms_io) September 4, 2024

“The recent Board and leadership changes that Bitfarms has implemented were made independently of Riot, on behalf of all of our shareholders, to ensure the right team is in place to enhance shareholder value at Bitfarms, not for Riot’s benefit and approval,” Bitfarms asserted.

Adding fuel to the fire, Riot has declined to enter a non-disclosure agreement or propose a revised acquisition offer.

Instead, the company has resorted to public criticism and what Bitfarms characterizes as actions that harm the interests of its shareholders.

Their approach has been consistent with its earlier tactics, in which the company aggressively pushed for board changes while portraying Bitfarms’ governance as inadequate.

Despite all these, Bitfarm is still growing, even recently publishing its August Report.

#Bitfarms Provides August 2024 Production and Operations Update👀

– Bitfarms to Acquire Stronghold Digital Mining, Increasing 2025 Energy Portfolio by 47%
– Earned 233 BTC in August 2024 & Increased HODL to 1,103 BTC
– Increased Operational Hashrate to 11.3 EH/s
– Announces… pic.twitter.com/LWk5bptGGY

— Bitfarms (@Bitfarms_io) September 3, 2024

Bitfarms’ Moves and Riot’s Counteractions

The dispute has further intensified with Bitfarms announcing the acquisition of Stronghold to diversify its energy portfolio and enhance its operational capabilities in the U.S.

Bitfarms plans to leverage Stronghold’s power capacity, potentially adding up to 307 MW, which is expected to boost its overall energy capacity to over 950 MW, with nearly half based in the U.S. by the end of 2025.

Riot’s criticism of Bitfarms’ acquisition strategy has been another focal point of the conflict.

Riot has accused Bitfarms of making moves that are not in the best interests of its shareholders, framing these acquisitions as misaligned with shareholder value.

Riot’s allegations mirror its broader narrative against Bitfarms, suggesting that the company’s current leadership lacks the strategic direction to grow the company.

Bitfarms, in its defense, has positioned the Stronghold acquisition as a value-enhancing opportunity that aligns with its long-term strategic objectives.

The company asserted that this move is not only about expanding capacity but also about refining its operational focus, particularly in the U.S. market, which is seen as a key growth area.

Although Bitfarms has committed to evaluating the amended requisition proposal, it has not indicated any intention to acquiesce to their demands.