On May 29th, Bitfarms made public its decision to decline the acquisition proposition presented by Riot Platforms, citing a fundamental disagreement over the valuation of the company. The offer, tendered on April 22nd, proposed a payment of $2.30 for each common share, structured as a combination of cash and Riot common stock, totaling a substantial $950 million.

Convening the Special Committee of Independent Directors, Bitfarms subjected the offer to rigorous scrutiny, ultimately determining that it fell short in reflecting the true potential and trajectory of the company's growth. Despite the generous financial terms, Bitfarms' leadership underscored its commitment to maximizing shareholder value, a principle it deemed not adequately addressed by the offer.

This decision unfolded against the backdrop of a multifaceted scenario within Bitfarms. The company found itself navigating through the intricate terrain of a CEO transition following the unexpected departure of Geoffrey Morphy on May 13th. Morphy, who had assumed the reins of leadership in 2022 after joining Bitfarms in 2020, took legal action against the company, alleging breach of contract and wrongful dismissal, adding another layer of complexity to the situation.

In response to the leadership vacuum, Bitfarms' Chairman and Co-Founder, Nicolas Bonta, assumed the interim roles of President and CEO, stepping in to ensure continuity and stability during this period of transition. Meanwhile, Riot Platforms justified its unsolicited offer by expressing concerns about the board's decision-making in light of the legal proceedings initiated by the former CEO.

Despite these challenges, Bitfarms revealed that it had garnered interest from other prospective suitors, signaling a vote of confidence in the company's underlying strength and potential. Each interested party was required to adhere to a standard Non-Disclosure Agreement, enabling Bitfarms' Special Committee to conduct a thorough evaluation of strategic alternatives aimed at maximizing shareholder returns.

These strategic alternatives encompassed various avenues, including maintaining the current trajectory, exploring strategic partnerships or mergers, or even entertaining the possibility of a sale. Throughout this process, Bitfarms reiterated its unwavering commitment to prioritizing the interests of its shareholders, ensuring that any decision undertaken would be aligned with the overarching goal of value maximization.

Furthermore, Bitfarms reaffirmed its dedication to advancing its operational objectives, emphasizing its ongoing efforts to expand its footprint and enhance the efficiency of its mining operations. With a target hashrate of 21 EH/s and an efficiency goal of 21 w/TH slated for attainment by 2024, Bitfarms positioned itself for substantial growth and competitiveness within the evolving landscape of the cryptocurrency mining industry.

Currently boasting 12 operational Bitcoin mining facilities, along with one under development, Bitfarms maintains a geographically diversified presence spanning across Canada, the United States, Paraguay, and Argentina. This expansive reach underscores Bitfarms' strategic positioning and underscores its resilience in navigating through turbulent waters while poised for sustained growth and success.