Riot Platforms proposes to buy crypto miner Bitfarms, becomes largest shareholder

A wall of miners seen at the cryptocurrency farming operation Bitfarms in Farnham, Quebec

(Reuters) - Riot Platforms said on Tuesday it has offered to acquire all outstanding shares of Bitfarms for about $950 million in total equity value, even after a private proposal was rejected by the crypto miner's board last month.

"We were disappointed to learn that the Bitfarms Board rejected our compelling proposal without engaging in substantive dialogue with us," said Jason Les, Chief Executive Officer of Riot.

Riot added it has acquired a 9.25% stake in Bitfarms, becoming the company's largest shareholder, and intends to request a special shareholder meeting to add a new independent director to the crypto miner's board.

It has offered $2.30 per Bitfarm share in cash and Riot stock. U.S.-listed shares of Bitfarms jumped 7.4% in early trading.

(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Krishna Chandra Eluri)