June 5 (Reuters) - Bitcoin miner Riot Platforms ( RIOT )

said on Wednesday it has acquired ownership of 12% stake in

rival Bitfarms Ltd. ( BITF ).

The company bought around 1.5 million shares in Bitfarms ( BITF ) on

Wednesday at the price of about $2.45 per purchased share, it

said in a statement.

Riot said, prior to this acquisition it beneficially owned

about 11.63% of shares in Bitfarms ( BITF ).

The company said it intends to request a special

shareholder meeting to add independent directors to Bitfarms' ( BITF )

board citing concerns regarding its corporate governance.

The announcement comes after investment firm Kerrisdale

Capital revealed a short position in Riot Platforms ( RIOT ) earlier in

the day, sending shares of the bitcoin miner down as much as 9%.

The bitcoin miner had made a proposal to acquire all shares

of Bitfarms ( BITF ) last week for about $950 million in total equity

value.

(Reporting by Disha Mishra in Bengaluru)