Riot Platforms has acquired a significant stake in Bitfarms, intensifying a takeover bid that has led to a sharp rise in Bitfarms' stock price. In the past 30 days, Bitfarms' stock has surged over 56% on the Nasdaq, reflecting the market's response to Riot's aggressive acquisition efforts.

On June 11, Riot Platforms, a prominent cryptocurrency mining firm, disclosed in a filing with the United States Securities and Exchange Commission (SEC) that it had purchased approximately six million common shares of Bitfarms in three separate trades. This acquisition, valued at over $111 million at the time, brought Riot's total ownership to 13.1% of Bitfarms.

The acquisition comes amidst Riot's broader strategy to take over the Canada-based Bitfarms. However, Bitfarms has moved to thwart these efforts by implementing a shareholder rights plan on June 10, widely perceived as a "poison pill" strategy. This plan aims to dilute the value of Bitfarms' shares if any single entity acquires more than a 15% stake, thus impeding Riot's takeover ambitions.

Jason Les, CEO of Riot Platforms, has publicly criticized Bitfarms' defensive maneuver. In a statement on June 12, Les asserted that Bitfarms' plan contradicts established legal and governance standards by setting the threshold at 15% instead of the more typical 20%. Despite these objections, Bitfarms maintains that the shareholder rights plan complies with Canadian securities laws and still allows Riot to pursue its acquisition plans within legal boundaries.

Riot, headquartered in the United States, made an offer in May to acquire Bitfarms for $950 million. This offer represented a 24% premium over Bitfarms' one-month volume-weighted average share price as of May 24. The proposed acquisition underscores Riot's strategy to expand its footprint in the cryptocurrency mining sector.

The takeover bid has also coincided with significant leadership changes at Bitfarms. In May, Geoffrey Morphy stepped down as CEO after filing a lawsuit against the company. Nicolas Bonta has since been serving as the interim president and CEO. Les has called for Bonta's removal, attributing Bitfarms' alleged poor corporate governance practices to his leadership.

As the battle for control of Bitfarms unfolds, the market and stakeholders are closely watching the developments, which could significantly impact the landscape of the cryptocurrency mining industry.