Bitfarms postponed its October shareholders’ meeting to November 6 after Riot Platforms, its largest shareholder, pushed for changes to the board, including appointing Ben Gagnon as CEO.
In response to Riot Platforms, the company’s largest shareholder, Bitfarms has rescheduled its October shareholders “special meeting” to November 6.
Riot released an open letter to Bitfarms shareholders on September 3, outlining its ongoing endeavors to “address Bitfarms’ broken governance.” This initiative includes the appointment of Ben Gagnon as CEO and a member of the Bitfarms Board.
Nevertheless, Gagnon was appointed to the board of directors after the departure of two of Bitfarms’ co-founders, Emiliano Grodzki and Nicolas Bonta. Riot advocated for a more proactive strategy to safeguard shareholders’ interests:
“Bitfarms needs additional truly independent directors with the experience and expertise to ensure that decisions about the Company’s strategy moving forward reflect what is best for all shareholders.”
Riot Platforms’ Strategy is met with resistance from Bitfarms.
Bitfarms rescheduled the “special meeting of shareholders” from Oct. 29 to Nov. 6 in response to Riot’s demand for a change in the board members.
The company has stated that the extension will enable Bitfarms and its shareholders to assess and evaluate Riot’s long-term implications and demands.
Riot Platforms and Bitfarms, both crypto mining companies, assert that they are acting in the best interests of all Bitfarms shareholders and accuse one another of pursuing a personal agenda.
In response to Riot’s requests for additional independent directors, the Bitfarms special committee proposed a settlement agreement that was transmitted to Riot:
“The addition of one mutually agreed upon Board nominee resulting in an increase of the size of the Board to six, and standstill and other customary provisions.”
During the November special meeting, Bitfarms shareholders will have the opportunity to vote and express their opinions on the “proxy contest” between Riot and Bitfarms.
The Increasing Influence of Riot Platforms on Bitfarms
Riot Platforms increased its ownership in Bitfarms to 18.9% by investing an additional $2.28 million in August. The acquisition of 1 million Bitfarms common shares through open market purchases was equivalent to the transaction.
Riot’s total holdings in Bitfarms increased from 84.3 million to 85.3 million shares as a consequence of the transaction.
Riot had previously expressed its intention to continue reviewing its investment in Bitfarms and to contemplate additional actions, such as adjusting its position or proposing additional changes to the board composition.
