Golden Finance reports that according to CoinDesk, Bitcoin miner Riot Platforms has recently made a major equity transaction decision. The company announced the sale of 1.75 million shares of Bitfarms stock. The transaction value is approximately 1.58 million US dollars. After calculation, the average selling price of the stock is about 0.90 US dollars per share. This move directly led to a significant change in Riot’s shareholding ratio in Bitfarms, dropping from nearly 15% to 14.3%.
Riot’s sale of Bitfarms’ stocks this time is not an isolated incident, but one of the series of actions it has been continuously reviewing related investments after its unsuccessful acquisition of Bitfarms. Looking back to May this year, the Bitcoin mining market was in turmoil. Riot made a hostile takeover offer to Bitfarms, planning to acquire all of Bitfarms’ shares at a price of $2.30 per share. Given Bitfarms’ equity size at that time, The acquisition offer involves a total value of approximately 950 million US dollars. As soon as this news was released, it immediately drew high attention from the market. Bitfarms’ stock price rose in response on the same day, with an increase of up to 6.9% at one point. However, Bitfarms responded promptly. After careful consideration, its board of directors believed that Riot’s offer seriously underestimated the company’s value and resolutely rejected the acquisition proposal.
Entering June, Riot did not give up its acquisition intention and continued to increase its holdings in Bitfarms, with its shareholding ratio once rising to approximately 12%. However, in the face of Bitfarms’ firm resistance, Riot eventually abandoned the acquisition plan the following month. Since then, Riot has begun to re-examine its investment layout in Bitfarms, and the sale of 1.75 million shares this time is the actual action after this re-evaluation.
Riot has also clearly stated that it will continue to conduct dynamic evaluations of its holdings in Bitfarms based on a variety of complex factors in the future. These factors cover multiple levels, including the outcome of potential discussions with Bitfarms’ management, adjustments to the company’s own strategic direction, and fluctuations in macro market conditions, etc. This means that in the future, Riot’s shareholding in Bitfarms will not remain constant. It may increase its shareholding due to various factors in order to seek more say and synergy in the Bitcoin mining market. It is also possible to further reduce holdings, adjust the investment portfolio in a timely manner and avoid potential risks based on reasons such as strategic changes of the company or deterioration of the market environment.
From a market perspective, the Bitcoin mining industry has witnessed a complex and volatile development trend in recent years. On the one hand, with the significant fluctuations in the price of Bitcoin and the continuous increase in mining difficulty, especially after Bitcoin completed its fourth halving in April this year, the mining reward dropped from 6.25 BTC to 3.125, and many miners are facing the predicament of a sudden increase in profit pressure. On the other hand, the trend of industry consolidation is becoming increasingly obvious. Large mining companies are attempting to expand their scale, enhance market competitiveness and reduce operating costs through acquisitions, cooperation and other means. Against this backdrop, the equity dispute between Riot and Bitfarms, as well as Riot’s current share sale, undoubtedly add more uncertainties to the development of the Bitcoin mining market. All market participants are closely monitoring Riot’s subsequent new developments in investment strategies and business layouts.
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