Bitfarms announces settlement with Riot Platforms

Bitfarms Ltd (NASDAQ:BITF), a cryptocurrency mining company, disclosed today a settlement agreement with Riot Platforms (NASDAQ:RIOT), Inc. The agreement, dated today, resolves undisclosed disputes between the two parties.

The filing with the U.S. Securities and Exchange Commission, made public on Monday, did not detail the nature of the disputes but confirmed the settlement was reached on September 23, 2024. Bitfarms, headquartered in Toronto, Canada, operates within the finance services sector, specifically in cryptocurrency assets management.

The settlement could signal a resolution to possible operational or competitive tensions between Bitfarms and Riot Platforms, another significant player in the cryptocurrency mining industry. Both companies are known for their extensive mining operations and have been expanding their capabilities in the fast-growing digital currency market.

Ben Gagnon, Chief Executive Officer of Bitfarms, signed the SEC filing, indicating the company's commitment to the terms of the agreement. The details of the settlement, including any financial terms or operational changes, remain confidential as of the filing.

In other recent news, Bitfarms Ltd. and Riot Platforms Inc., two major players in the Bitcoin industry, have reached a settlement agreement. The agreement led to the resignation of Andrés Finkielsztain from Bitfarms' Board of Directors, and the appointment of Amy Freedman as a board member.

Riot Platforms has also agreed to withdraw its previous requisition and accept standstill provisions through the Bitfarms 2026 Annual Meeting. These are among the recent developments in the companies' relationship.

Riot Platforms has also hit a significant milestone, holding over 10,000 Bitcoin. The company's total deployed hash rate across all facilities has reached 23.5 EH/s, marking a 128% rise from the previous year. Meanwhile, Riot Platforms has increased its stake in Bitfarms to 18.9%, acquiring an additional 1 million common shares.

Furthermore, Riot Platforms has announced the removal of its data center hosting segment from reportable business segments, following the termination of all contracts with the company's data center hosting and colocation customers. On the financial front, the company reported revenues of $70 million, surpassing projections.

However, adjusted EBITDA was significantly lower than the anticipated $16 million. Following these developments, Needham maintained a Buy rating on Riot Platforms, and Stifel Canada initiated coverage with a Speculative Buy rating.

InvestingPro Insights

In light of the recent settlement between Bitfarms Ltd and Riot Platforms, Inc., investors may be keen to understand the financial health and market position of Riot Platforms. According to real-time data from InvestingPro, Riot Platforms holds a market capitalization of approximately $2.23 billion, with a P/E ratio of 18.56, suggesting a moderate valuation relative to its earnings.

InvestingPro Tips highlight that Riot Platforms is expected to see net income growth this year, with analysts also predicting an increase in sales. This could be indicative of a positive outlook for the company post-settlement. Additionally, Riot Platforms maintains more cash than debt on its balance sheet, which may provide financial flexibility and stability. However, it's also important to note that the company has been identified as quickly burning through cash, which could be a point of consideration for investors.

For those looking to delve deeper into the financial metrics and future projections for Riot Platforms, InvestingPro offers additional tips and insights, which may further inform investment decisions. Interested readers can find more information at https://www.investing.com/pro/RIOT, which includes a total of 15 InvestingPro Tips for a comprehensive analysis.

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