On May 29, Bitfarms announced its rejection of Riot Platform’s unsolicited acquisition proposal, citing undervaluation of the company. The proposal, received on April 22, offered $2.30 per common share in a combination of cash and Riot common stock, totaling a $950 million bid.

Bitfarms’ Special Committee of Independent Directors reviewed the offer and determined it did not adequately reflect the company’s potential for growth.

The proposal arrived amidst a period of complexity for Bitfarms, including an ongoing CEO search following the abrupt departure of former CEO Geoffrey Morphy on May 13. Morphy, who had been with Bitfarms since 2020 and became CEO in 2022, has filed a lawsuit against the company seeking $27 million in damages for breach of contract and wrongful dismissal.

This legal dispute has added uncertainty to Bitfarms’ leadership transition, with Nicolas Bonta, the Chairman and Co-Founder, assuming the role of interim President and CEO while the search for a permanent replacement continues.

Riot Platforms stated that its offer was driven by concerns over the board’s decisions in light of the allegations made in Morphy’s lawsuit.

Despite these challenges, Bitfarms reported receiving additional unsolicited interest from other parties, each of which has signed a Non-Disclosure Agreement. The Special Committee is now conducting a thorough evaluation of strategic options to optimize shareholder value, including maintaining the current business plan, pursuing a strategic merger, or exploring a sale of the company. The board affirmed its commitment to maximizing shareholder returns.

Bitfarms also emphasized progress in its CEO search and ongoing efforts to expand and upgrade its mining operations. The company aims to achieve a hashrate of 21 EH/s and efficiency of 21 w/TH by 2024, marking significant improvements compared to industry benchmarks.

Currently, Bitfarms operates 12 Bitcoin mining facilities across Canada, the United States, Paraguay, and Argentina, with one additional facility under development.