Riot Platforms sold 8.85 million shares of Bitfarms at a price of $0.97 per share, raising approximately $8.58 million. This transaction resulted in a loss of 56% on the invested capital, as the share price was nearly half of the acquisition cost.
This is reported by Business • Media
Changes in Ownership Structure and Market
The sold securities accounted for nearly 10% of the stake held by Riot Platforms. Following this transaction, the company’s stake in Bitfarms decreased from 19.9% to 14.6%. Currently, the remaining 81.25 million shares owned by Riot are valued at only $73.1 million – nearly three times less than the amount of the initial investments.
In March 2024, Riot Platforms initiated a hostile takeover of Bitfarms, gradually acquiring its shares. By September, the company managed to gather 90 million shares at a weighted average price of $2.24, investing approximately $202 million. However, soon after, the companies reached an agreement: Riot withdrew its purchase offer in exchange for a reform of Bitfarms’ board of directors. Following this, Bitfarms’ shares began to sharply depreciate, reflecting the overall negative trend among medium and small bitcoin miners due to shrinking margins and revenues.
Market Reaction and Investment Prospects
On May 28, 2025, shares of mining companies significantly decreased in price following the publication of the minutes from the U.S. Federal Reserve’s meeting, which highlighted increasing economic uncertainty. Despite this, the market remained relatively stable.
“Riot’s loss reflects not only a failed strategic investment but also deteriorating conditions in the industry,” analysts noted. “At the same time, the company retains influence over Bitfarms as the largest minority shareholder, despite the partial liquidation of its position.”
Currently, the future of these investments directly depends on the recovery of mining profitability and the overall state of the cryptocurrency market, experts emphasize. It is worth noting that the Hash Ribbons indicator, which signals periods of stress in the bitcoin mining market, has recorded the end of miner capitulation for the first time since the halving.