Bitfarms Founder Resigns

Nicolas Bonta, the founder of Bitfarms, has resigned from the company’s board of directors following pressure from Riot Platforms, a rival bitcoin mining firm. Riot, which owns 16.9% of Bitfarms’ stock, had previously pushed for a vote to replace Bonta with a new board director.

After Bonta’s departure, Bitfarms announced that Brian Howlett will take over as the new board chair. Additionally, Bitfarms’ CEO, Ben Gagnon, who was appointed just last month, will now join the board. Bonta expressed confidence in the new leadership, stating, “Now is the right time for me to step down and for Ben to join the board. I am equally confident in Brian’s ability to lead the board as we look ahead to the next phase of Bitfarms’ growth.”

With these changes, four of the five members on Bitfarms’ board are now “independent,” according to the company’s recent press release. This board shakeup follows Riot’s criticism of Bitfarms, accusing it of “poor corporate governance and an inability to reach its full potential.” Riot, which has attempted to acquire Bitfarms in the past, owns a significant portion of the company’s stock and had called for a vote to replace Bonta and two other directors with independent nominees. This vote was scheduled for October 29.

Bonta’s resignation marks a major shift for Bitfarms, a company he has been closely associated with since its founding. Earlier this year, Bonta served as interim CEO after the company removed Geoffrey Morphy from the CEO position in May. Morphy has since filed a $27 million lawsuit against Bitfarms for alleged breach of contract and wrongful dismissal. Bitfarms has dismissed these claims as “without merit.”

These leadership changes reflect a broader power struggle between Bitfarms and Riot Platforms, highlighting the competitive nature of the cryptocurrency mining industry. Riot has been vocal about its dissatisfaction with Bitfarms’ management, leading to the recent push to reshape the board. The outcome of this conflict could have significant implications for Bitfarms’ future.

Bitfarms, a prominent name in bitcoin mining, is now at a critical juncture as it faces internal and external challenges. The leadership changes may signal a new direction for the company as it works to address Riot’s criticisms and improve its governance and operations.

Despite the recent turmoil, Bitfarms remains a key player in the industry, but the ongoing disputes have raised concerns about its stability and future prospects. Both Bitfarms and Riot Platforms have declined to comment on the latest developments. The next few months will be crucial as Bitfarms navigates this period of change and aims to reassure its investors and stakeholders.

In conclusion, Nicolas Bonta’s exit from Bitfarms’ board represents a significant shift in leadership, driven by pressure from Riot Platforms, a major shareholder and competitor. With new leadership and ongoing challenges, Bitfarms is at a pivotal moment as it seeks to overcome internal conflicts and external pressures in the competitive bitcoin mining industry. The future direction of Bitfarms will be shaped by these changes and the company’s ability to adapt to them.