Bitcoin Miner Bitfarms appoints Ben Gagnon as CEO during Riot’s takeover deal, aiming to boost growth in AI and energy.
Bitfarms, a Canadian Bitcoin mining company, has appointed Ben Gagnon as its new CEO. The company is currently in a competitive dispute with its competitor, Riot Platforms, Ltd. This leadership transition is particularly strategic since Bitfarms is presently engaged in a struggle for control with Riot Platforms.
Bitfarms appoints Ben Gagnon as new CEO
Gagnon previously served as the company’s Chief Mining Officer. The firm is bolstering its defenses against hostile takeover proposals by Riot Platforms due to his promotion, which is part of a broader strategic shift.
Gagnon has been employed in the Bitcoin mining industry for nearly a decade and serves as the Chief Mining Officer at Bitfarms. His appointment follows the departure of the previous CEO, Geoff Morphy, who ended his tenure negatively with a legal dispute regarding his dismissal.
The Chair of Bitfarm’s Independent Search Committee, Edie Hofmeister, stated that Gagnon is well-suited to lead the company due to his experience in the mining industry and his involvement in the company’s growth strategy. Bitfarms seeks to expand its operations, particularly in the United States, and pursue new high-performance computing and AI ventures. The board believes that his leadership will be of immeasurable value.
Intensifying Conflict with Riot Platforms
The context for this leadership change is a rivalry with Riot Platforms, which has recently initiated an online campaign against Bitfarms’ management and strategy. Riot has become more aggressive in this regard. Riot initiated a hostile acquisition attempt in early June, offering Bitfarms approximately $950 million in total equity value. Bitfarms declined the offer.
Bitfarms responded to the acquisition threat by implementing a share buy-back plan, which compelled Riot to reconsider its position and necessitated a reorganization of the Bitfarms board of directors. Riot is attempting to influence the board to facilitate a merger, as the two have been involved in a conflict over Bitfarms’ business direction and control.
The shares of Riot and Bitfarms experienced a 3% and 0.47% decline in the most recent trading session, respectively, with Riot trading at $9.35 and Bitfarms at $2.66. The market’s reaction to these events has been closely monitored, with investors remaining somewhat apprehensive due to the ongoing corporate governance issues and the broader impact on the bitcoin mining industry.
At the same time, the organizations will expand their mining operations and pursue synergistic opportunities in energy generation and high-performance computation for AI under Gagnon’s leadership. These initiatives are part of a more comprehensive strategy to improve the company’s global competitiveness and diversify its business.