Riot Platforms RIOT bought Wednesday, June 5, 1.5 million shares in Bitfarms at about $2.45 per share representing approximately 0.37% of the Bitfarms outstanding shares. Now, Riot’s stake has increased to about 12%.
The 1.5 million BITF stocks were purchased on open market trades and the Nasdaq Stock Market. Riot Platforms beneficially owned 46,370,162 Common Shares, which is about 11.63% of the issued Common Shares. After yesterday’s purchases, the company beneficially owned 47,830,440 Common Shares, approximately 12.00% of the outstanding Common Shares.
Riot Platforms RIOT intends to requisition a stockholder meeting to add independent directors to Bitfarms’ board of Directors amid concerns of poor corporate governance.
Riot Platforms on May 28, has offered to acquire all outstanding shares of Bitfarms for about $950 million ($2.30 per share) but the Bitfarms board rejected the proposal.
The company’s stock has lost over 30% since the beginning of the year and now the market capitalization stands at $2.79 billion. Yesterday Investment firm Kerrisdale Capital announced it had taken a short position in RIOT, sending the stocks down to $8.81 (-9%). Kerrisdale fund sees BTC mining as one of the worst business models, as the sector has volatile revenue, intense competition and regulatory pressure.
Yesterday, JP Morgan maintained Riot Platforms at Overweight and cut the price target from $15.5 to $12.
Bitfarms BITF stock in the Toronto stock exchange closed yesterday at CAD $3.42, hitting the highest price since March 21, with a market cap of 1.03 billion. The technical outlook is bullish for the stock as it trades above all the major moving averages, but the price has also reached overbought levels as the RSI is at 72.46.
HC Wainwright & Co. yesterday, assumed Bitfarms BITF at Buy rating and set a price target of $4.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).