Golden Finance reports that according to CoinDesk, the recent moves of Bitcoin miner Riot Platforms have drawn market attention. The company announced the sale of 1.75 million shares of Bitfarms stock. Based on the transaction price at the time of trading, the value of this transaction is approximately 1.58 million US dollars, and the average selling price of the stock is about 0.90 US dollars per share. This move has led to a significant change in Riot’s shareholding ratio in Bitfarms, reducing it from nearly 15% originally to 14.3%.
Riot’s sale of Bitfarms’ shares this time is not an isolated incident, but an important part of its continuous review of its own investment layout after failing to successfully acquire Bitfarms. In May this year, the Bitcoin mining market was once in turmoil. At that time, Riot proposed a hostile takeover offer for Bitfarms at a price of $2.30 per share. Against the backdrop of the growing trend of consolidation in the cryptocurrency mining industry, Riot’s move aims to achieve scale expansion through acquisitions, enhance its competitiveness in the industry, and obtain synergy effects. For instance, by integrating the mining facilities, technical resources and operation teams of both sides, it is expected to reduce costs and enhance mining efficiency. However, Bitfarms promptly rejected the offer, arguing that the price failed to fully reflect the company’s value and was detrimental to its strategic development. The following month, Riot abandoned the acquisition plan and began to re-examine its investment in Bitfarms thereafter.
Riot stated in a subsequent statement that it will continue to conduct dynamic evaluations of its holdings in Bitfarms based on a variety of complex factors. These factors cover multiple aspects, and potential discussions with the Bitfarms management are of crucial importance. If the two sides can reach a consensus on issues such as business cooperation and resource sharing in the future, it may affect Riot’s shareholding decision. From the perspective of the company’s strategic direction, Riot’s own layout in the expansion of Bitcoin mining business, investment in technological research and development, and diversified development plans will also influence its attitude towards holding shares in Bitfarms. Market conditions are an even more crucial factor that cannot be ignored. Fluctuations in the price of Bitcoin, changes in mining difficulty, rises and falls in energy costs, and the competitive landscape of the industry may all prompt Riot to adjust its investment strategy. Therefore, there are multiple possibilities for Riot’s future shareholding in Bitfarms. It may increase its holdings based on market conditions and its own strategy to enhance its influence over Bitfarms, or it may further reduce its holdings when necessary to optimize its asset allocation.
For Riot, it has always held an important position in the field of Bitcoin miners. In the first quarter of 2025, Riot achieved a total revenue of 161.4 million US dollars, among which the revenue from Bitcoin mining increased significantly, reaching 142.9 million US dollars. A total of 1,530 Bitcoins were produced in this quarter. However, the unit mining cost (excluding depreciation) rose to $43,808, much higher than $23,034 in the same period last year. This was mainly affected by industry-wide factors such as the halving of Bitcoin block rewards and the increase in the overall network computing power. As of March 31, the company held 19,223 unrestricted Bitcoins, which provided a certain asset reserve for its subsequent business development. In addition, Riot’s data center project in Coacana, Texas, is also making steady progress. It plans to build a total power capacity of 1GW and complete the acquisition of Rhodium’s mining machine assets at the Rockdale site in April, continuously expanding its mining capacity.
Bitfarms, as a Canadian Bitcoin mining company, also has a certain influence in the industry. When facing Riot’s acquisition offer, Bitfarms’ share price rose sharply, indicating the market’s re-evaluation of its value. Although Bitfarms rejected Riot’s acquisition offer, it is also actively exploring its own development path. Previously, informed sources disclosed that Bitfarms had negotiated to acquire Stronghold Digital Mining Inc. for 164 million US dollars. Attempt to achieve scale expansion and resource integration through mergers and acquisitions.
In the current cryptocurrency mining market, industry consolidation and competitive landscape are intertwined. On the one hand, with the fluctuation of Bitcoin’s price and the change in mining costs, miners are under pressure to make profits. Integrating resources and reducing costs have become the development direction for many miners. On the other hand, the competition among different miners has become increasingly fierce, with continuous intensification in aspects such as technological innovation, energy acquisition, and the competition for market share. Riot’s current sale of Bitfarms shares is just a microcosm of the dynamic changes in the market. In the future, as the industry develops, the strategic adjustments made by miners in terms of investment layout and business expansion will continue to influence the overall landscape of the cryptocurrency mining market.
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