07:17 AM EDT, 05/29/2024 (MT Newswires) -- Bitfarms Ltd. ( BITF ) , a global Bitcoin vertically integrated company, confirmed Wednesday that it received a proposal by Riot Platforms, Inc. on April 22, 2024 to acquire 100% of the common shares of Bitfarms ( BITF ), at a price of US$2.30 per common share consisting of cash and Riot common stock.

In a statement Bitfarms ( BITF ) said a Special Committee of the Board comprised solely of independent directors "carefully considered the proposal and determined it significantly undervalues the company and its growth prospects". In order to advance discussions with Riot in a meaningful manner, the Special Committee requested customary confidentiality and non-solicitation protections to which Riot did not respond, it added.

Bitfarms ( BITF ) in Wednesday's statement went on to say: "Having received additional unsolicited expressions of interest, with each additional party executing a customary Non-Disclosure Agreement, the Special Committee is conducting a thorough strategic alternatives review to ensure it achieves maximum shareholder value. These alternatives could include, among others, continuing to execute on the company's business plan, a strategic business combination or other strategic transaction, or a sale of the company."

Bitfarms ( BITF ) said as previously announced, the company's CEO search "remains on track" and the company "continues to execute the expansion and transformative fleet upgrade". Bitfarms ( BITF ) noted it has realized notable efficiency gains and is progressing toward 2024 guidance of 21 EH/s and 21 w/TH, representing a 223% hashrate increase and 40% efficiency improvement. "This would be the strongest growth and efficiency gains in both the company's history and among publicly-traded Bitcoin mining peers this year. The company strongly believes that continued execution towards this growth plan maximizes shareholder value," it added.

Riot Platforms on Tuesday said it boosted its beneficial ownership stake in Bitfarms ( BITF ) to 10% from 9.25% and that it plans to nominate independent directors to join the board of the bitcoin mining company.

Riot said that it had acquired about 3 million Bitfarms ( BITF ) common shares, boosting its total holding to 39.9 million shares.

BITF was at last look up near 1.4% in US premarket, having jumped near 10% in regular trade on the Nasdaq yesterday. It gained more than 5% in Canada.