Bitfarms Ltd ( BITF ) shares are trading higher Tuesday after Riot Platforms Inc ( RIOT ) announced that it made a proposal to acquire all outstanding shares of the Bitcoin (CRYPTO: BTC) mining company and accumulated a 9.25% stake.

What Happened: Riot said it sent a proposal to Bitfarms’ board to acquire all of the outstanding shares of Bitfarms ( BITF ) for $2.30 per share. The cash and stock proposal represents approximately $950 million in total equity value.

The consideration proposed would result in Bitfarms ( BITF ) shareholders owning up to approximately 17% of the combined company. 

Riot noted that the proposal was originally delivered privately to Bitfarms’ board on April 22. The company said the board rejected it without engaging in substantive dialogue with Riot. Therefore, Riot decided to disclose the proposal directly to Bitfarms ( BITF ) shareholders.

Riot also announced that it accumulated a 9.25% stake in Bitfarms ( BITF ) and is now Bitfarms’ largest shareholder.

“A combination of Bitfarms ( BITF ) and Riot would create the premier and largest publicly listed Bitcoin miner globally, with geographically diversified operations well-positioned for long-term growth,” said Benjamin Yi, executive chairman of Riot.

“We were disappointed to learn that the Bitfarms Board rejected our compelling Proposal without engaging in substantive dialogue with us. While we have long respected Bitfarms’ business and management team, we are confident that Bitfarms’ shareholders will agree that this Proposal represents a significantly more attractive alternative for Bitfarms ( BITF ) than its standalone trajectory.”

See Also: Argentina Seeks Guidance From El Salvador On Bitcoin Adoption

BITF Price Action: Bitfarms ( BITF ) shares were up 7.9% at $2.18 at the time of publication, according to Benzinga Pro.