Riot Platforms seeks three seats on Bitfarms board after foiled takeover bid

:Bitcoin miner Riot Platforms is seeking three board seats at rival Bitfarms, a long-sought acquisition target that rebuffed its $950 million buyout offer and adopted a poison pill to fend off any attempt hostile takeover.

Riot, Bitfarms’ largest shareholder with nearly 15% stake, withdrew its offer on Monday but said it was “ready to engage” with the company’s reconstituted board about a possible transaction .

The two companies have been at odds since Riot’s unsolicited offer in April, which Bitfarms said undervalued the company.

Toronto-based Bitfarms has since begun examining its strategic alternatives. Riot, however, accused him of lacking strong corporate governance earlier this month, setting the stage for a board battle.

Crypto miners are actively seeking growth opportunities, in part to offset the hit to their profits from the so-called Bitcoin “halving” in April.

The halving, which occurs approximately every four years to reduce the rate at which new bitcoins are created, cuts miner rewards in half.

Riot has called a special meeting of Bitfarms shareholders to vote on its three nominees for director – John Delaney, Amy Freedman and Ralph Goehring.

Delaney is an expert in government and public affairs, while Freedman is a former investment banker who has assisted boards of directors on corporate governance issues, Riot said.

Goehring is a seasoned CFO with expertise in finance, accounting and tax, according to the company.

All three candidates are independent of both companies and “will help oversee the strategic alternatives process at Bitfarms,” Riot added.

Shares of Bitfarms and Riot fell nearly 7 percent and 2 percent, respectively. Bitfarms did not immediately respond to a request for comment.