Bitfarms defended its pending acquisition of Stronghold Digital Mining on Wednesday, calling current claims from Riot Platforms “deceptive.”
The months-long feud between Bitfarms and Riot was revived Tuesday when the latter firm referred to as on Bitfarms to halt all transactions forward of its October shareholder assembly.
That message — within the type of Riot’s open letter to shareholders — got here after Bitfarms final month revealed its proposed purchase of Stronghold Digital.
Learn extra: Riot criticizes Bitfarms’ acquisition proposal, board adjustments
Riot, which is Bitfarms’ largest shareholder, criticized the pending $125 million stock-for-stock transaction (with Bitfarms additionally set to imagine $50 million of debt). It famous that the $175 million sum is a greater than 100% premium to Stronghold’s closing share worth the day earlier than the announcement.
Although Bitfarms didn’t particularly defend the quantity it plans to pay for Stronghold in a Wednesday assertion, the transaction provides a “great value-enhancing alternative,” the corporate mentioned.
It added that the deal is about to diversify Bitfarms’ entry to energy and rebalance its vitality portfolio towards the US. In all, the transaction may add about 307 megawatts of energy capability by the tip of subsequent 12 months.
Riot tried to purchase Bitfarms earlier this 12 months through a so-called “hostile” bid that Bitfarms rejected. Riot now owns a 19.9% stake in Bitfarms.
Learn extra: A deeper have a look at Riot’s ‘hostile’ bid to take over Bitfarms
Accusing Bitfarms management of “poor company governance practices and constant lack of ability to appreciate Bitfarms’ full potential,” Riot referred to as a particular shareholder assembly that’s scheduled for late October.
“The upcoming particular assembly shouldn’t be about company governance, as Riot has repeatedly positioned it to be, however slightly about Riot making an attempt to amass Bitfarms at a reduced worth for the advantage of Riot shareholders, not Bitfarms shareholders,” Bitfarms mentioned.
Riot has additionally claimed Bitfarms has not been keen to “work constructively” with the corporate. The latter basically accused Riot of the identical factor, noting it has refused to enter right into a non-disclosure settlement with Bitfarms and has not amended its acquisition proposal.
Subsequent month’s assembly will embrace a vote on two new potential board administrators. Riot nominated Amy Freedman and John Delaney to interchange co-founder Andres Finkielsztain and Fanny Philip as board members.
Bitfarms’ resolution to nominate CEO Ben Gagnon to the board final month as firm co-founder Nicolas Bonta stepped down was applied “independently of Riot, on behalf of all of our shareholders,” Bitfarms mentioned Wednesday.
“The board will contemplate and reply to Riot’s amended requisition proposal in the end,” the corporate added. “No shareholder motion is required right now.”
