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Update 2:55pm: Adds Bitfarms response, updates shares.
Riot Platforms (NASDAQ:RIOT) withdrew its $2.30 a share offer for Bitfarms (NASDAQ:BITF) and is now seeking three board seats as it pursues a takeover of the bitcoin miner.
Riot, which made a $950 million offer for the smaller bitcoin miner last month that was rejected, has withdrawn the offer because it believes it needs boardroom changes at Bitfarms (BITF) to be able to engage in negotiations, according to a statement on Monday.
“Riot remains completely committed to pursuing a transaction with Bitfarms,” Riot said in the statement. “However, it is clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible.”
Riot, which has an almost 15% stake in Bitfarms (BITF), is calling for a special meeting and has nominated three candidates for the board including John Delaney, former mayor of Jacksonville, Florida; Amy Freedman, former CEO of Kingsdale Advisors, and Ralph Goehring, a former energy company chief financial officer at firm’s including Bonanza Creek Energy and Berry Petroleum.
Bitfarms (BITF) has 21 days to schedule the special meeting.
Bitfarms (BITF) confirmed that it has received a shareholder meeting request from Riot.
“The Special Committee is disappointed that Riot declined to engage constructively and participate in the process, and instead has continued to take steps to attempt to undermine the integrity of the process and harm the interests of other Bitfarms shareholders,” Bitfarms said in a statement on Monday. “The Board and Special Committee remain committed to achieving the best outcome for all Bitfarms shareholders.”
News of the dropped bid was earlier reported by Bloomberg.
Bitfarms (BITF) fell 8.7%, while Riot (RIOT) dropped 3.5%.