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Bitfarms and Riot Platforms settle dispute with board changes

GrafaGrafa2024/09/24 06:05
By:Mahathir Bayena

Bitfarms and Riot Platforms have successfully settled a long-standing governance conflict.

Under the terms of the settlement, Andrés Finkielsztain will resign from Bitfarms’ board, while Amy Freedman will be appointed as a new member.

Additionally, a sixth board member will be introduced, pending shareholder approval at a special meeting scheduled for no later than November 20, 2024.

In a statement released on September 23, the companies announced a standstill agreement that will last until 2026.

Riot, which is one of Bitfarms’ major shareholders, has agreed to refrain from any further hostile actions, including attempts to increase its stake beyond a specified limit or suggest additional board changes.

During the upcoming special meeting, shareholders will vote on expanding the board from five to six members, as well as ratifying Bitfarms’ shareholder rights plan that was put in place on July 24, 2024.

Riot has pledged to support these initiatives.

The conflict began in May 2024 when Riot made a $950 million buyout offer for Bitfarms, which was ultimately rejected.

Following this, Riot increased its holdings, reaching 18.9% ownership by August.

In response to this aggressive approach, Bitfarms implemented a “poison pill” strategy to block further takeover attempts.

Bitfarms Ltd. is involved in cryptocurrency mining operations in Canada, the United States, Paraguay, and Argentina.

It owns and manages server farms that primarily validate transactions on the Bitcoin (CRYPTO:BTC) blockchain, earning cryptocurrency through block rewards and transaction fees. 

Meanwhile, Riot is a Bitcoin mining and digital infrastructure firm that employs a vertically integrated approach.

The company operates Bitcoin mining data centers in central Texas and has electrical switchgear engineering and fabrication operations in Denver, Colorado.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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