Originally published on: September 03, 2024
Riot Platforms, the major stakeholder of Bitfarms, is shaking things up by publicly advocating for changes to the board of directors ahead of a crucial shareholders meeting set for Oct. 29.
With a strong focus on improving governance and enhancing value for all shareholders, Riot is gearing up to push for reforms within the publicly traded Canadian company, which is a key player in the cryptocurrency industry, particularly in Bitcoin mining operations.
Proudly boasting a 19.9% stake in the BTC mining-focused firm, Riot has already seen some movement within Bitfarms, with co-founders Emiliano Grodzki and Nicolas Bonta recently stepping down from the board.
However, Riot is not satisfied with these changes, deeming them simply reactive to external pressure. In an open letter to shareholders, Riot suggests the election of two new independent directors, Amy Freedman and John Delaney, to bring about the necessary transformation.
If appointed, Freedman and Delaney would replace current board members, Andres Finkielsztain and Fanny Philip, in hopes of injecting fresh perspectives and expertise into the company’s leadership.
Riot is sending a clear signal to Bitfarms, cautioning against any moves that could solidify the existing board’s position before the upcoming meeting. The shareholder emphasized the importance of allowing shareholders to express their views and urged the company not to gain unfair advantages in the director election.
Should Bitfarms ignore this advice and take actions to benefit themselves at the expense of shareholders, Riot warns that the incumbent directors would face personal repercussions.
In a strategic play, Bitfarms recently added CEO Ben Gagnon to the board, a move that some believe is related to Riot Platforms’ takeover bid. Bonta, who previously served as Bitfarms’ interim president and CEO, gracefully stepped down from the board to make room for Gagnon.
As tensions rise and stakes get higher, the cryptocurrency industry is watching closely to see how this power play between Riot Platforms and Bitfarms will unfold. Stay tuned as developments continue to unfold in this gripping corporate drama.
