Riot offers $950 million to buyout Bitfarms in hostile takeover amid CEO controversy
Revolt provides $950 million to buyout Bitfarms in adversarial takeover amid CEO controversy Revolt provides $950 million to buyout Bitfarms in adversarial takeover amid CEO controversy
Revolt's willpower to compose a adversarial takeover uncover follows Bitfarms' Board of Administrators' rejection of its private proposal with out substantive engagement.
Quilt art/illustration by means of CryptoSlate. Notify involves mixed convey which can also encompass AI-generated convey.
Revolt Platforms has announced a proposal to compose Bitfarms for roughly $950 million, reflecting a 24% premium to Bitfarms’ one-month volume-weighted common fragment model as of Would possibly per chance 24.
Per the press starting up, Revolt’s willpower to compose a adversarial takeover uncover follows Bitfarms’ Board of Administrators’ rejection of its private proposal with out substantive engagement.
The supply, which used to be first and necessary made privately on April 22, comes amid interior turbulence at Bitfarms, including a CEO dispute and subsequent lawsuit.
Largest public miner
The acquisition objectives to score the world’s largest publicly listed Bitcoin miner, combining Revolt’s financial strength and strategic vision with Bitfarms’ unusual operations. Revolt Government Chairman Benjamin Yi mentioned:
“A aggregate of Bitfarms and Revolt would score the premier and largest publicly listed Bitcoin miner globally, with geographically various operations successfully-positioned for long-period of time growth.”
Revolt, already the largest shareholder of Bitfarms with a 9.25% stake, is offering a combine of money and outmoded stock that might per chance well consequence within the latter’s shareholders proudly owning about 17% of the mixed entity.
The proposed merger would score a Bitcoin mining powerhouse with roughly 1 GW of unusual energy ability and 19.6 EH/s of self-mining ability, doubtlessly rising to 1.5 GW and 52 EH/s by the close of the year.
Citi is serving as Revolt’s financial advisor, while Paul, Weiss, Rifkind, Wharton & Garrison LLP, alongside with Davies Ward Phillips & Vineberg LLP, are acting as simply advisors.
Bitfarms has yet to reply publicly to Revolt’s newest proposal.
CEO dispute
Revolt’s announcement comes amid critical turbulence at Bitfarms connected to the sacking of its worn CEO, Geoffrey Morphy, who has filed a lawsuit against the company for wrongful dismissal.
Bitfarms announced in March that Morphy would step down from his role later within the year as soon as a replacement used to be realized. This transition thought used to be intended to compose sure a delicate change in leadership while the company hunted for a recent CEO.
Alternatively, Morphy filed a $27 million lawsuit against the company on Would possibly per chance 10, looking out for aggravated and punitive damages over allegations of breach of contract and wrongful dismissal. The lawsuit sought $27 million in damages and integrated allegations against sure people of the Bitfarms Board of Administrators.
The submitting of the lawsuit ended in a instantly acceleration of Morphy’s termination on Would possibly per chance 13.
Bitfarms appointed co-founder and Chairman Nicolas Bonta as meantime CEO following Morphy’s dismissal. The corporate has mentioned that Morphy’s claims are with out merit and intends to protect itself vigorously.
Governance concerns
Morphy’s abrupt departure and the following simply fight have raised critical concerns about governance practices within Bitfarms, particularly at a critical time for the company and the broader mining industry.
The dispute has added to the challenges Bitfarms faces, including operational and market pressures following the unusual Bitcoin halving. It has additionally caused explain among shareholders, including Revolt.
Revolt executives, including CEO Jason Les, raised concerns about Bitfarms’ governance following the dispute, particularly the actions taken by co-founders Bonta and Emiliano Grodzki.
Les mentioned in a social media submit:
“We are deeply consuming that the founders on the Bitfarms Board might per chance per chance no longer be acting within the acceptable interests of all Bitfarms shareholders. The abrupt termination of the Bitfarms CEO raises severe governance questions.”
Revolt plans to requisition a selected shareholders assembly following Bitfarms’ Annual General and Particular Meeting on Would possibly per chance 31, 2024, to signify recent unbiased administrators for the Bitfarms Board.
Mentioned listed right here
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his abilities worldwide for over a decade. Specializing in financial journalism, he now specializes in crypto reporting.
Data Desk
CryptoSlate is a comprehensive and contextualized supply for crypto news, insights, and records. Specializing in Bitcoin, macro, DeFi and AI.
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Revolt Platforms
Revolt Platforms is a bitcoin mining company, supporting the Bitcoin blockchain by means of impulsively rising industrial-scale mining focused within the US.
Bitfarms
Bitfarms (NASDAQ/TSX: BITF) is a Canadian Bitcoin mining company that used to be founded in 2017.
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