Riot Platforms Seeks Bitfarms Board Overhaul

Riot Platforms Seeks Bitfarms Board Overhaul

MiningRegulation

By Jakub Lazurek

25 Jun 2024 (19 days ago)

2 min read

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Riot Platforms seeks to replace key Bitfarms board members in a strategic move to revive its takeover bid for the Canadian crypto mining firm.

Riot Platforms has officially requested a Bitfarms shareholder meeting to replace key board members, continuing its effort to take over the Canadian cryptocurrency mining company. This follows Bitfarms' recent rejection of Riot's acquisition proposal.

Shareholders will vote on the removal of CEO Nicolas Bonta and director Andrés Finkielsztain, whom Riot blames for "poor corporate governance" and failing to realize Bitfarms' potential. Riot has nominated three new independent board members: John Delaney, president of Flagler College and former Jacksonville mayor; Amy Freedman, an adviser at Ewing Morris and Longacre Square Partners; and Ralph Goehring, a consultant and former CFO of Global Clean Energy Holdings.

Bitfarms has 21 days to schedule the meeting, responding to Riot's formal request. This request is part of a longer conflict that started in April when Riot tried to buy Bitfarms. Riot has since increased its stake in Bitfarms to about 14.9%, becoming its largest shareholder.

Riot accuses Bitfarms' leadership of avoiding meaningful discussions about the acquisition. Tensions rose when Bitfarms ousted CEO Geoffrey Morphy, who then filed a lawsuit against the company. Riot claims Bitfarms' leaders have hindered productive dialogue about the acquisition.

Bitfarms invited Riot to join its strategic review process, but Riot allegedly declined and continued buying Bitfarms shares, which Bitfarms says harms other shareholders. Riot insists that board changes are necessary for honest negotiations.

Riot believes a merger with Bitfarms would create the largest public Bitcoin miner globally, with diverse operations and long-term growth potential. Riot remains dedicated to pursuing this merger, seeing it as a way to improve efficiency and market presence in cryptocurrency mining.

Riot argues that Bitfarms' current leadership has failed and resisted constructive talks. The upcoming shareholder meeting will be crucial for Bitfarms' future. If Riot's nominees win, it could lead to renewed merger negotiations and possibly a successful union with Riot Platforms.

In summary, Riot's push for board changes at Bitfarms is a critical move in its takeover attempt. The outcome of the shareholder meeting will impact both companies and the cryptocurrency mining industry. Riot is determined to acquire Bitfarms and believes the merger will benefit both parties.

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