What's Going On With Bitcoin Mining Stock Riot Platforms Thursday?

Riot Platforms Inc RIOT shares are trading lower Thursday. The company announced that Ontario Capital Markets Tribunal has cease traded Bitfarms Ltd’s BITF poison pill.

What Happened: Riot announced that it was successful in its application to the Ontario Capital Markets Tribunal to cease trade the shareholder rights plan (poison pill) implemented by Bitfarms’ board.

“This ruling from the Tribunal in favor of Riot’s application is a win for all Bitfarms shareholders. The adoption of the off-market Poison Pill is yet another example of the broken corporate governance that plagues Bitfarms and of the ongoing attempts by the Bitfarms directors to entrench themselves. We appreciate that the Tribunal acted quickly and decisively to remove the Poison Pill,” said Jason Les, CEO of Riot Platforms.

Riot noted that it continues to believe that its three director nominees need to be elected to the Bitfarms board at the special meeting of shareholders in October in order to repair Bitfarms’ poor corporate governance. 

Earlier this week, Riot announced the acquisition of Block Mining for $92.5 million. The acquisition adds 60 megawatts (MW) of current operational capacity with the potential to quickly expand to 110 MW this year.

See Also: Bitcoin Tumbles 3%, Ethereum Plunges Below $3,200: What Is Going On With ETFs?

Multiple analysts weighed in on the stock this week. HC Wainwright & Co reiterated a Buy rating and price target of $17 and Cantor Fitzgerald reiterated Overweight and a price target of $23. Needham maintained a Buy and lowered its price target to $13.

Riot is due to report financial results for the second quarter after the market close on July 31. The Bitcoin BTC/USD miner is expected to report a loss of 15 cents per share and revenue of $75.086 million, according to estimates from Benzinga Pro. 

RIOT Price Action: Riot Platforms shares were down 1.5% at $11.15 at the time of publication, according to Benzinga Pro.

Photo: Gaston Cerliani from Shutterstock.