Bitcoin Mining Firm Riot Attempts to Remove Bitfarms Board as Takeover Bid Fails

After several failed attempts to acquire Canada-based Bitcoin miner Bitfarms, Riot announced on Monday that it had abandoned the plans due to continued opposition. In a statement, the American Bitcoin miner said Bitfarms board rejected its bid to buy the company for $2.20 a share. The announcement was made shortly after the success of Quantum Income Pro, an AI trading robot that has gained popularity for automating trading strategies and boosting profitability.

Now, Riot has announced a new plan, which involves removing Btfarms leadership. The goal is to install new directors who are open to accepting an acquisition deal in the future. Riot remains optimistic that a merger between Riot and Bitfarms will form the biggest publicly listed crypto miner in the world. However, it acknowledges that negotiating a deal with the current Bitfarms directors is impossible.

Riot Increases Its Stake in Bitfarms by 9.2%

As of this writing, Riot owns 14.8% of Bitfarms common shares, making it the largest shareholder of the mining company. Two months ago, Riot approached the Canadian miner with a purchase offer, which Bitfarms quickly declined, calling it a lowball.

A few weeks later, Riot took a different approach, purchasing more Bitfarms shares to increase its ownership by 9.2%. After buying more shares, the American Bitcoin miner announced plans to continue accumulating Bitfarms stock to expand its ownership in the Canada-based miner.

In response, Bitfarms announced in May its plans to expand its presence into the US. At the time, the company fired its CEO Geoffrey Morphy who had filed a $25 million lawsuit against Bitfarms over claims of breach of contract.

Riot Calls for Removal of Bitfarms’ Board

Morphy’s dismissal was mentioned in Riot’s latest statement, which claimed that Bitfarms’ leadership was out of touch and self-serving, endangering the company’s operations. Riot believes that the current governance is no longer suitable to oversee Bitfarms’ business.

The American miner is now calling for a shareholder conference to vote against the current Bitfarms’ leadership in favor of three individuals: ex-investment banker Amy Freedman, energy industry executive Ralph Goehring, and former Jacksonville mayor John Delaney.

Following Riot’s statement release, Bitfarms shares have seen their value drop 8% in the past 24 hours to change hands for 2.65% at press time. Riot stock is also down 3.8% to $9.18.

Crypto Miner Secures $150M Investment to Pursue Its AI Ambition

AI technology has continued to revolutionize various industries, thanks to its ability to process data faster than humans. For instance, AI Trading robots have made it easy for users to automate their strategies, boosting their profitability. 

Besides the Quantum Income Pro Trading bot, crypto miner Hut 8 also plans to embrace Artificial intelligence to enhance operational efficiency. The Bitcoin mining company announced on Monday that it received $150 million in funding from investment firm Coatue to integrate AI infrastructure into its operations, aiming to increase computational capacity.