Last week, CleanSpark announced a $155 million agreement to acquire GRIID Infrastructure, pending GRIID’s shareholder approval and other customary closing conditions. Executives from both companies are optimistic about the future.
In contrast, Riot Platforms' attempt to acquire Bitfarm was met with controversy. Riot’s $950M proposal to acquire Bitfarms was pushed back. On June 13, 2024, Riot reported beneficial ownership of 13.65% in Bitfarm and, as its largest shareholder, called a special meeting to reconstitute Bitfarm's Board of Directors. The media referred to this aggressive move as a "hostage takeover" due to the conflicting views of the two companies.
Buying a substantial number of outstanding shares of a competitor provides significant influence over business decisions.
The following is a table displaying the free float value of U.S. listed Bitcoin miners. Theoretically, if anyone delves into the major shareholders and is willing to invest, the person/company could potentially become the biggest shareholder of a public Bitcoin mining company.
No wonder such a route is called a “poison pill”. 💊
