Bitcoin mining startup Riot Platforms bids to acquire rival Bitfarms in $950 million deal

Bitcoin miner Riot Platforms announced on Tuesday that it has offered to buy all shares from rival Bitfarms in a move aimed at a shake-up of the cryptocurrency mining industry. According to a Reuters report, the deal is pegged at around $950 million in cash and stock.

If the deal passes regulatory hurdles and is approved by Bitfarm’s board, it will result in the world’s largest publicly traded Bitcoin miner. The big move by Riot reflects a quickly evolving trend of consolidation within the Bitcoin mining space, Reuters reported.

Some analysts see many possible reasons fueling the reason behind this market-share grab. For one, the two could capitalize on economies of scale, reducing their operational costs. Moreover, the combined entity would be more prepared to deal with the complex and changing regulatory environment surrounding cryptocurrency.

The future of this proposed merger remains unknown, but one thing is for certain: Bitcoin mining is now being escalated to a new level. All eyes are on Bitfarms’ board to see how they will react to this major offer.

Founded in 2000, Riot Platforms is a Bitcoin mining and digital infrastructure company with headquartered in Castle Rock, Colorado. Riot Platforms’ vision is to be the leading Bitcoin-driven infrastructure platform.

Riot’s main operations are conducted in central Texas for Bitcoin mining and data center operations and in Denver, Colorado for electrical switchgear engineering and fabrication. Additionally, the company purchases cryptocurrency and blockchain businesses while providing support to blockchain technology companies all over the globe.