Bitfarms Jumps 5% Amid Riot’s Bitcoin Mining Takeover Offer

The share price of Bitfarms (BITF) has jumped up 5% after Texas-based Riot Platforms (NASDAQ: RIOT) published a proposal intending to take over the Canadian bitcoin mining rival.

Riot said on Tuesday that it has proposed to the board of directors of Bitfarms to acquire all of its outstanding shares at $2.3 per share with a total equity value of $950 million. In addition, Riot said it has accumulated a 9.25% stake in Bitfarms, becoming its largest shareholder.

Bloomberg first reported Riot’s takeover proposal on Tuesday. Following Riot’s publication of the plan, the stock price of BITF is changing hands at $2.12 as of writing. It was initially up over 11% at $2.2 during the pre-market trading on Tuesday but has since retreated after the market opened.

Riot’s publication of the plan also comes a month after an initial outreach to Bitfarms was said to be rejected without “engaging in substantive dialogue.” Bitfarms recently fired its interim CEO before completing an executive search and transition.