Golden Finance reports that according to CoinDesk, the recent moves of Bitcoin miner Riot Platforms in the capital market have attracted widespread attention. The company announced that it has successfully sold 1.75 million shares of Bitfarms stock. Based on the estimated price at the time of the transaction, the total value of this transaction is approximately 1.58 million US dollars, and the average selling price of the stock remains at around 0.90 US dollars per share. This operation led to a significant change in Riot’s shareholding ratio in Bitfarms, dropping from nearly 15% before the transaction to 14.3%.
Riot’s current reduction in Bitfarms shares is actually part of its in-depth review and adjustment of its investment portfolio after the failure of its acquisition plan for Bitfarms. Looking back to May this year, the Bitcoin mining market witnessed a wave of acquisition enthusiasm. At that time, Riot made a hostile takeover offer to Bitfarms at a price of $2.30 per share. In the current context where competition in the Bitcoin mining industry is becoming increasingly fierce, Riot’s move aims to achieve scale expansion through acquisitions, integrate resources from both sides, and thereby enhance its competitiveness and say in the industry. Through the merger, theoretically, both sides can optimize the layout of mining facilities, share advanced technologies, integrate operation teams, thereby reducing overall operation costs and improving mining efficiency. However, Bitfarms promptly rejected this acquisition offer, arguing that the price offered by Riot was far from reflecting the company’s true value, and from the perspective of long-term strategic development, accepting the offer might have an adverse impact on the company’s independent development. The following month, after careful consideration, Riot ultimately abandoned this acquisition plan. Since then, it has begun to re-examine its investment in Bitfarms. This share sale is a concrete manifestation of this ongoing review action.
In a subsequent statement, Riot stated that it will continue to continuously assess its holdings in Bitfarms based on a variety of complex and dynamic factors. Potential communication and negotiation with the management of Bitfarms play an important role in it. If both sides can conduct in-depth discussions and reach cooperation intentions on issues such as business cooperation, resource complementarity, and technology sharing in the future, it is highly likely to influence Riot’s shareholding decisions. From Riot’s own strategic planning perspective, its development directions in areas such as the expansion of Bitcoin mining business, investment in emerging technology research and development, and diversified business layout will also play a crucial role in determining whether it continues to hold or adjust its shares in Bitfarms.
In addition, the rapid changes in market conditions are an important factor that cannot be ignored. Frequent fluctuations in Bitcoin prices, cyclical changes in mining difficulty, ups and downs in energy costs, and dynamic adjustments in the industry competition landscape will all prompt Riot to flexibly adjust its investment strategies. Therefore, there are many possibilities for Riot’s future shareholding in Bitfarms. It is possible to further increase its shareholding when the market environment aligns with strategic needs to enhance its influence and control over Bitfarms. It may also continue to reduce its shareholding when necessary, optimize its own asset allocation, in order to cope with market risks or obtain better investment returns.
According to Riot’s own operating data, in the first quarter of 2025, the company 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. This was attributed to the overall favorable market price of Bitcoin and the stable operation of the company’s mining business. The company produced a total of 1,530 Bitcoins in this quarter. However, the unit mining cost (excluding depreciation) climbed to $43,808, much higher than $23,034 in the same period last year. The main reasons were the impact of 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 and financial guarantee 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 and strengthening its core competitiveness in the Bitcoin mining field.
Bitfarms, a highly influential Bitcoin mining company in Canada, saw its share price rise significantly in the face of Riot’s acquisition offer due to changes in market expectations. This also reflects from the side the market’s re-evaluation and recognition of its value. Although Bitfarms rejected Riot’s acquisition offer, the company is also actively exploring its own development path and seeking new growth opportunities. Previously, informed sources disclosed that Bitfarms had acquired Stronghold Digital Mining Inc. for 164 million US dollars. Initiate negotiations, attempting to achieve scale expansion and resource integration through mergers and acquisitions, and further enhance its position in the Bitcoin mining market.
In the current cryptocurrency mining market, industry consolidation and competitive landscape are intertwined. On the one hand, with the fluctuations in Bitcoin’s price and the rise in mining costs, many miners are under tremendous pressure to make profits. Integrating resources and reducing costs have become important ways for enterprises in the industry to seek development. On the other hand, the competition among different miners in terms of technological innovation, energy acquisition, and competition for market share has also become increasingly fierce. Riot’s current sale of Bitfarms shares is just a microcosm of the dynamic changes in the market. In the future, as the industry continues to develop, the strategic adjustments made by miners in investment layout, business expansion and other aspects will continue to affect the overall pattern of the cryptocurrency mining market. The development trend and competitive situation of the industry will also become more confusing.
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