Riot Platforms Replaces Bitfarms Directors as MT. Gox Plans Repayment; Bitcoin Price Plummets Amid Falling Whale Activity
Summary:
Riot Platforms has withdrawn its acquisition bid for Bitfarms, choosing instead to replace three company directors. Rehabilitating cryptocurrency exchange Mt. Gox has announced its repayment plan for Bitcoin and Bitcoin Cash investors starting July 2024. Bitcoin's price has correspondingly hit a 40-day low as significant Bitcoin transactions decreased by 42% over the last two days. Other indicators suggest a potential bearish period for Bitcoin is imminent.
Riot Platforms has abandoned its planned takeover of Bitfarms, a Bitcoin mining company based in Canada, choosing instead to replace three of the organization's directors. Mt. Gox, a bankrupt cryptocurrency exchange, has finally unveiled its schedule for reimbursing Bitcoin and Bitcoin Cash investors. In the meantime, significant Bitcoin transfers have decelerated over the last 48 hours, coinciding with a 40-day low in the cryptocurrency’s value.
Unsuccessful in its bid to acquire Bitfarms, Riot Platforms now plans to appoint new representatives to three seats on the Canadian mining firm's board. On June 24, Riot Platforms declared a 14.9% ownership in Bitfarms, following Bitfarm's implementation of a shareholder rights strategy to impede Riot from acquiring in excess of 15% of its stocks. Riot has now decided against further stock purchases and instead is aiming to alter the firm's board.
“It is evident that our hopes of coming to an agreement with the existing Bitfarms board on a possible merger is a dead end,” Riot said. Riot has formally retracted its offer to buy all Bitfarms ordinary shares at $2.30 per share and will engage in talks about synergies that would be mutually beneficial to the combined entity.
Earlier in the year, Riot identified Bitfarms as a main acquisition target and made moves toward acquiring the firm in May, offering $950 million before Bitfarms capped its stock holdings at 15%.
The trustee overseeing the rehabilitation of Mt. Gox, a cryptocurrency exchange that misappropriated 850,000 Bitcoin belonging to investors in 2024, will soon begin reimbursing its former clients. The repayments in Bitcoin (BTC) and Bitcoin Cash (BCH) will commence in July 2024, according to a statement by the exchange made on June 24.
Approximately $9.4 billion in Bitcoin is due around 127,000 Mt. Gox creditors who have been awaiting repayment for over a decade since the exchange's meltdown in 2014 due to several unnoticed thefts that were never noticed.
In late May, Mt. Gox transferred 141,686 BTC valued at $9.62 billion into a new digital cash repository, “1Jbez,” from multiple other offline storage associated with Mt. Gox. This was the first such funds transfer from the defunct exchange in over half a decade.
Significant Bitcoin transactions have fallen by 42% over the past 48 hours, just as Bitcoin’s price fell below $63,000. A significant decrease was noted in transactions worth $100,000 USD or more, from 17,091 to 9,923 according to Santiment data dated June 23. This change in activity among the Bitcoin whales comes as Bitcoin’s price fell from $64,685 to $62,856.
Other indicators such as the Crypto Fear and Greed Index falling to a “Neutral” rating of 51 and consistent days of outflows from the spot Bitcoin exchange-traded funds (ETF) suggest a potentially bearish period ahead for Bitcoin.
Published At
6/24/2024 9:50:02 PM
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