Bitfarms Bites Back at Riot in Bitcoin Mining Battle

Bitfarms has fired back at Riot in the latest rift between the two Bitcoin mining firms and an increasingly contentious takeover fight.

In a statement Wednesday, Bitfarms said that Riot had “declined to engage with us constructively” and that its rival’s takeover plan would hurt shareholders.

Riot has been trying to snap up smaller miner Bitfarms for months. Riot yesterday criticized Bitfarms’ move to acquire mining company Stronghold Digital. Bitfarms had announced last month that it would do so—while fighting off Riot’s effort.

“Our recent proposed acquisition of Stronghold is consistent with our strategy to diversify our access to power and also rebalances our energy portfolio towards the U.S.,” Bitfarms said.

“Riot has declined to engage with us constructively—including by refusing to enter into a standard non-disclosure agreement with Bitfarms or put forth a revised proposal for our consideration—and has instead taken to public attacks and actions to harm the interests of other Bitfarms shareholders,” it added.

Riot has been trying to acquire Bitfarms since April. It first made an unsolicited offer of around $950 million to its Canada-based rival but was rejected. It then started buying the company’s stock in a bid to gain control over it and has advocated changes to the Bitfarms board of directors.

But Bitfarms has continued to resist, saying recent board and leadership changes “were made independently of Riot... not for Riot’s benefit and approval.”

Its plans to buy Pittsburgh-based Stronghold Digital were characterized “strategic” move that could help the Bitcoin miner stop the hostile takeover from Riot, experts told Decrypt last month. 

Riot did not immediately respond to a request for comment from Decrypt.