Originally published on: September 10, 2024
In a strategic move sparked by Riot Platforms’ push for board reshuffling, Bitfarms, a prominent Bitcoin mining firm, has pushed back its anticipated October shareholders’ “special meeting” to November 6. This adjustment comes in response to Riot’s constructive criticism and calls for alterations to the composition of Bitfarms’ board of directors.
Shifting Priorities in Response to Riot’s Directive
Riot Platforms initiated a dialogue with Bitfarms shareholders on September 3 through an open letter, outlining persistent efforts to rectify what it perceives as “broken governance” at Bitfarms. Among the proposed changes is the appointment of Ben Gagnon as CEO and a member of the Bitfarms Board, replacing the departing co-founders, Emiliano Grodzki and Nicolas Bonta. Riot advocates for a more proactive stance aimed at safeguarding the interests of shareholders.
Facing the Demand for Change
In light of Riot’s compelling suggestions for board modifications, Bitfarms has opted to push back its shareholder conference from October 29 to November 6. This rescheduling affords Bitfarms and its stakeholders sufficient time to review and assess Riot’s proposals and their long-term ramifications diligently.
Navigating Conflicting Agendas
Both juggernauts in the crypto mining arena, Riot Platforms, and Bitfarms, assert their commitment to the welfare of all Bitfarms shareholders while leveling accusations of ulterior motives against one another. Counteracting Riot’s bid for the inclusion of additional independent directors, the Bitfarms special committee has tabled a settlement proposal forwarded to Riot, seeking a harmonious resolution.
Empowering Stakeholders’ Voices
Come November’s special shareholders’ gathering, Bitfarms investors will exercise their voting rights to weigh in on the evolving proxy contest between Riot Platforms and Bitfarms. This democratic process enables shareholders to participate actively in shaping the future trajectory of these intertwined entities.
Seismic Shifts in Ownership Dynamics
Last August, Riot Platforms bolstered its investment in Bitfarms by injecting an additional $2.28 million to amplify its ownership stake to 18.9%. The strategic move saw Riot acquiring 1 million Bitfarms common shares through calculated open market purchases, propelling its total holdings in Bitfarms to 85.3 million shares from the previous 84.3 million.
Looking ahead, Riot has signaled its intent to continuously evaluate its investment portfolio in Bitfarms, hinting at potential adjustments to its position or further proposals to refine the composition of the board in response to evolving market dynamics.
