By Robb M. Stewart


Bitfarms is looking at other approaches and alternatives after rejecting a takeover bid from Riot Platforms that seeks to build a giant Bitcoin miner.

The Toronto-based company said Wednesday it has received additional unsolicited interest since it in late April received a proposal from Riot to buy all of its shares for a mix of cash and stock.

It said each of the unnamed parties agreed to a non-disclosure agreement, and a special committee at Bitfarms is reviewing strategic alternatives, which could include a business combination or other deal, a sale of the company, or continuing with its current business plan.

Bitfarms confirmed that Rio offered to buy all of its shares at $2.30 each, but the special board committee of independent directors determined it significantly undervalued the company and its growth prospects. It said the committee requested confidentiality and non-solicitation protections but Riot didn't respond.

On Tuesday, Riot disclosed its bid for Bitfarms and said it had already accumulated an almost 9.3% stake in its target to become its largest shareholder. In a statement later that day it said it had bought more shares, lifting its holding to about 10%.

Riot said its offer provides a premium for shareholders and immediate cash value, and if accepted would result in Bitfarms' holders owning about 17% of what it envisages would be the largest Bitcoin miner globally. Bitfarms shares last closed at $2.21 on Nasdaq, down 24% so far this year, and at C$3.01 in Toronto for a year-to-date drop of 22%.

Riot said Bitfarms rejected its offer without engaging in substantive dialogue.

Bitfarms said its search for a new chief executive remains on track and it continues with its expansion and upgrade of its mining fleet. Earlier this month, Bitfarms said it accelerated the departure of former CEO Geoffrey after he launched a lawsuit against the company claiming damages for breach of contract and wrongful dismissal.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

05-29-24 0800ET