SCHEDULE: Riot Platforms Cuts Bitfarms Stake to 7.2%

Riot Platforms, Inc. has reduced its beneficial ownership in Bitfarms Ltd. to 7.2% through recent open market share sales.

Summary

• Riot Platforms, Inc. filed Amendment No. 21 to its Schedule 13D regarding its stake in Bitfarms Ltd.
• Riot Platforms now beneficially owns 39,918,902 Common Shares of Bitfarms, representing 7.2% of the outstanding shares.
• This percentage is based on 557,548,857 Common Shares of Bitfarms outstanding as of July 22, 2025, as reported in Bitfarms' press release.
• Since its last Schedule 13D filing on July 23, 2025, Riot Platforms sold a total of 6,502,425 Common Shares on the open market.
• Sales occurred between July 24, 2025, and August 8, 2025, at weighted average prices ranging from US$1.26 to US$1.32 per share.

Sentiment

Score: 3

Explanation: The sentiment is negative as a significant shareholder is reducing its stake, which can signal a lack of confidence or a strategic shift, potentially putting downward pressure on the stock.

Negatives

• Riot Platforms, a significant shareholder, has reduced its stake in Bitfarms, potentially signaling a lack of confidence or a shift in investment strategy.
• The sale of 6,502,425 shares on the open market could exert downward pressure on Bitfarms' share price.

Risks

• Reduced investor confidence in Bitfarms due to a major shareholder divesting a portion of its holdings.
• Potential for further share sales by Riot Platforms, which could continue to depress Bitfarms' stock price.

Future Outlook

The filing does not provide specific forward-looking statements or guidance from either Riot Platforms or Bitfarms, beyond the reporting of past share transactions.

Management Comments

• Colin Yee, Chief Financial Officer of Riot Platforms, Inc., certified that the information set forth in this statement is true, complete, and correct to the best of his knowledge and belief.

Industry Context

This divestment by Riot Platforms occurs within the volatile cryptocurrency mining industry. While the filing does not provide reasons for the sale, it could reflect a strategic re-evaluation of investments within the sector or a move to reallocate capital, potentially impacting market perception of Bitfarms and the broader crypto mining space.

Comparison to Industry Standards

• The filing does not provide sufficient detail to compare Bitfarms' performance or Riot Platforms' investment strategy against specific industry benchmarks or comparable companies. The transaction is a specific divestment by a shareholder, not a performance report of the issuer.

Stakeholder Impact

• Shareholders of Bitfarms: May experience decreased share price due to selling pressure and potential loss of confidence from a major investor's divestment.
• Riot Platforms: Successfully divested a portion of its holdings, potentially realizing gains or reallocating capital.

Key Dates

Recommendation

The divestment by a significant shareholder like Riot Platforms suggests a potential lack of long-term conviction or a strategic shift away from Bitfarms. This action could signal underlying concerns or a belief that the stock's upside is limited, leading to potential downward pressure on the share price. For investors, this could be a signal to reduce exposure or consider selling.

Keywords

Bitfarms, Riot Platforms, Schedule 13D, Share Sale, Beneficial Ownership, Cryptocurrency Mining, Blockchain, Equity Stake, Divestment