Riot currently holds nearly 16% of Bitfarms shares

ChainCatcher news, according to a report by CryptoSlate, based on a filing submitted to the U.S. Securities and Exchange Commission (SEC) on July 31, Bitcoin miner Riot Platforms has strengthened its acquisition strategy for competitor Bitfarms this month by purchasing an additional approximately 10 million shares.

Currently, Riot holds 71.56 million shares of Bitfarms' total outstanding shares, valued at $159.1 million, which corresponds to 15.9% of the Canadian miner's equity. This acquisition took place shortly after the Ontario Capital Markets Tribunal ruled that Bitfarms' initial shareholder rights plan was invalid, which stipulated that if any entity acquired more than 15% of the company, it would dilute the outstanding shares.

However, with the plan being canceled, Bitfarms raised the equity dilution threshold from 15% to 20%, allowing Riot to take the opportunity to purchase more shares of its competitor.