11:43 AM EDT, 09/03/2024 (MT Newswires) -- Bitfarms ( BITF ) reported Tuesday a decline in Bitcoin (BTC) production for August due to an increase in average network difficulty during the month.

Bitfarms ( BITF ) generated 233 BTC in August, down from 253 BTC in July and 383 BTC in August 2023.

The company sold 147 BTC, higher than 142 BTC sold in July but below the 323 BTC sold in August 2023.

Bitfarms ( BITF ) said it agreed to acquire Stronghold Digital Mining, increasing its 2025 energy portfolio by 47%.

The company also assumed control of its first mega-site in Sharon, Pennsylvania, which offers access to up to 120 megawatts of power.

"By vertically integrating with power generation, advancing our energy trading capabilities, and securing two sites with substantial multi-year expansion potential, Bitfarms ( BITF ) is executing a strategy that positions us to diversify our operations beyond Bitcoin mining and maximize long-term shareholder value," chief executive Ben Gagnon said.

Meanwhile, Nasdaq-listed Riot Platforms ( RIOT ) issued an open letter to Bitfarms ( BITF ) shareholders ahead of Bitfarms' ( BITF ) Oct. 29 special meeting, calling for changes to Bitfarms ( BITF ) "to fix broken governance and enhance value for all shareholders."

Riot Platforms ( RIOT ) is the largest shareholder of Bitfarms ( BITF ) with a 19.9% stake.

Riot Platforms ( RIOT ) said it reduced its proposed slate of new directors to two from three, citing Bitfarms' ( BITF ) recent moves in response to public pressure from Riot.

"The Bitfarms ( BITF ) board should not enter into any financing transaction prior to the completion of the special meeting," Riot Platforms ( RIOT ) said in the letter. "Riot is deeply concerned that any transaction the current Bitfarms ( BITF ) board will pursue will be punitively dilutive to all Bitfarms' ( BITF ) shareholders when there are other more attractive financing options available."

Riot Platforms ( RIOT ) said it "will not hesitate to hold the incumbent directors personally accountable" if the Bitfarms ( BITF ) board "insists on taking any such action to further entrench itself at the expense of shareholders."

Bitfarms' ( BITF ) shares at last look fell $0.17 to $2.74 on the Toronto Stock Exchange.

Price: 2.74, Change: -0.18, Percent Change: -6.01