Riot Platforms has sold 8.85 million shares of the bitcoin miner Bitfarms at a price of $0.97 per share, raising $8.58 million. This transaction occurred at a 56% discount from the average purchase price, resulting in significant financial losses for the company.
This is reported by Finway
Reasons for the Sale and Market Impact
The exit from its position by Riot Platforms took place against the backdrop of a substantial decline in the valuations of bitcoin miners. The sold shares accounted for nearly 10% of the total package owned by the company. However, Riot Platforms remains the largest minority shareholder of Bitfarms, maintaining significant influence over its competitor despite the partial liquidation of its assets.
In March 2024, Riot began a hostile takeover attempt of Bitfarms, actively acquiring shares. By September of the same year, it had managed to purchase 90 million shares at a weighted average price of $2.24, investing approximately $202 million. However, following agreements regarding the restructuring of Bitfarms’ board of directors and the withdrawal of the full takeover proposal, the stock price sharply declined. This reflects the overall trend of falling in the small bitcoin miner segment due to decreasing fees and margins.
Current Situation and Prospects
After this transaction, Riot Platforms’ stake in Bitfarms decreased from 19.9% to 14.6%. At the current price of $0.90, the remaining 81.25 million shares are valued at only $73.1 million — nearly three times less than was initially invested.
“Riot’s loss reflects not only an unsuccessful strategic investment but also deteriorating conditions in the industry,” analysts noted.
On May 28, 2025, shares of mining companies experienced a significant correction, even amidst relative market stability. This occurred after the release of the minutes from the U.S. Federal Reserve’s meeting, which indicated increased economic uncertainty in the country. Experts emphasize that the future of such investments depends on the recovery of mining profitability and the overall dynamics of the cryptocurrency market.
It is also worth noting that the Hash Ribbons indicator, which tracks periods of stress in the bitcoin mining market, recorded the end of miner capitulation for the first time after the last halving.