Bitfarms Says Riot Bid ‘Significantly Undervalues’ Crypto Miner, Is Exploring Options

Bitfarms rejected Riot Platforms’ unsolicited $2.30 per share takeover bid as undervaluing the crypto miner.

The company said it hired investment bank Moelis to serve as a financial adviser in dealing with additional expressions of interest it has received.

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Crypto miner Bitfarms’ (BITF) rejected rival Riot Platforms’ (RIOT) takeover bid, saying it “significantly undervalues” the Canadian company.

Riot on Tuesday said it submitted an unsolicited proposal to buy Bitfarms for $2.30 per share in a deal that would create the world’s largest bitcoin miner.

Bitfarms said the offer was unsatisfactory and that it had received additional unsolicited expressions of interest from other parties.

A committee of the board considering the approach “determined it significantly undervalues the company and its growth prospects,” the Toronto-based firm said Wednesday. “In order to advance discussions with Riot in a meaningful manner, the committee requested customary confidentiality and non-solicitation protections to which Riot did not respond.”

Bitfarms also said it hired investment bank Moelis to serve as a financial adviser.

BITF shares rose nearly 5% to $2.31 during early trading on Wednesday.

Edited by Sheldon Reback.

 

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