A battle for ultimate ownership is heating up between two Bitcoin mining companies, with Canadian Bitcoin miner Bitfarms accusing Colorado-based Riot Platforms of attempting a hostile takeover.

In its original proposal on May 28, Riot Platforms presented a $950 million buyout offer based on Bitfarms’ one-month volume-weighted average share price as of May 24, 2024.

However, Bitfarms stakeholders were displeased with relinquishing more than 15% of their stake in a corporate takeover. Shortly afterward, in June, Riot announced the purchase of approximately six million Bitfarms common shares for $111 million.

Building on its previous holding, Riot acquired a 13.1% stake in Bitfarms. Bitfarms asserted that this move was “an attempt to undermine the integrity of the acquisition process.” Bitfarms said:

“It is clear that Riot’s interests are not aligned with those of Bitfarms shareholders, and instead of participating in the Special Committee’s process in good faith, Riot is attacking Bitfarms’ Board and corporate governance in an effort to push its low-ball bid and disrupt the Strategic Alternatives Review Process.”

Bitfarms did not immediately respond to Cointelegraph’s request for comment.

The Bitfarms special committee comprises independent directors who consider the unsolicited proposals and “determined that the proposal significantly undervalues Bitfarms and is not in the best interest of shareholders.”

On June 10, Bitfarms adopted the shareholder rights plan to prevent an “unsolicited takeover bid” from Riot Platforms.

Bitfarms believed its rebuttal served the best interest of its shareholders and claimed Riot intended to “short circuit” the decision.

Bitfarms operates 12 Bitcoin mining facilities in four countries: Canada, the United States, Paraguay and Argentina. In May, Bitfarms announced that its former CEO, Geoffrey Morphy, would step down after filing a lawsuit against the mining firm.

Nicolas Bonta has been acting as the interim president and CEO until the company decides on a replacement for Morphy. Les called on the board to remove Bonta, claiming he “bears direct responsibility for [Bitfarms’] poor corporate governance practices.”

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