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  "documentTitle": "Riot Platforms, Inc. (RIOT)",
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  "presentationDate": "2024-06-01 00:00:00",
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      "text": "We suspect this material level of dilution is why it was omitted from the press release.",
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      "text": "Dilution to Riot shareholders: 20%",
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      "text": "The timing of the transaction appears to be an opportunistic attempt to seize on internal turmoil at Bitfarms after the company announced a CEO transition in March...",
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      "text": "On May 28th, Riot announced that it had made a proposal to acquire Quebec-based bitcoin miner, Bitfarms, at a price of $2.30 per common share...",
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      "text": "While the deal would naturally make the combined company bigger, it is unclear if it would make it materially better. Bitfarms' current fleet efficiency is 31 J/TH, considerably worse than Riot's...",
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      "text": "Riot's press release does not provide the proposed mix of cash and stock but states the deal would have resulted in Bitfarms' shareholders owning up to ~17% of the combined company. We think the math (as shown below) implies the proposal was heavily weighted toward stock (~65%)...",
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      "text": "Source: Kerrisdale analysis, RIOT SEC filings, Riot press release, May 28, 2024.",
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      "text": "Recent Developments",
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