09:43 AM EDT, 05/28/2024 (MT Newswires) -- (Updates with details throughout.)

Riot Platforms ( RIOT ) said Tuesday it has proposed to acquire Bitfarms ( BITF ) for $2.30 per Bitfarms ( BITF ) common share in a cash-and-stock deal representing a total equity value of roughly $950 million.

The bitcoin mining company, which is Bitfarms' ( BITF ) largest shareholder with a 9.25% stake, said it initially made the proposal in April but Bitfarms' ( BITF ) board rejected it. Riot reiterated its offer in a Tuesday letter to Bitfarms' ( BITF ) board, the company added.

Riot said it has decided to disclose its proposal to Bitfarms' ( BITF ) shareholders as "new allegations in a lawsuit brought by Bitfarms' ( BITF ) recently terminated CEO, if accurate, raise serious questions about whether certain directors are committed to acting in the best interests of all shareholders."

Riot said it plans to requisition a special stakeholder meeting to propose new "well-qualified and independent directors" to the board.

Bitfarms ( BITF ) did not immediately respond to a request for comment from MT Newswires.

Bitfarms ( BITF ) was up 5% in early Tuesday trading while Riot shares were more than 1% higher.

Price: 10.49, Change: +0.12, Percent Change: +1.15