Bitfarms cryptocurrency mining company has scheduled a shareholder meeting for October in response to a request from Riot Platforms, which is currently planning a takeover.
Bitfarms’ board announced on July 12 that it would convene a shareholder meeting on October 29 in response to allegations that Riot intends to “disrupt the strategic alternatives review process” that the mining company has initiated.
Riot made an offer to acquire Bitfarms for $950 million in May. However, the company has responded by employing various strategies to impede the acquisition.
Riot platforms initiated a campaign to replace three of the mining company’s board of directors with candidates who appeared to be in its favor after Bitfarms implemented a strategy to prevent Riot from acquiring a 15% or higher stake in the firm.
Geoffrey Morphy, the former CEO of Bitfarms, resigned in May following the filing of a $27 million lawsuit against the company. Until Ben Gagnon’s appointment on July 8, Nicolas Bonta was the interim CEO.
“The Company is steadfast in its dedication to constructive engagement with all shareholders and is optimistic that Riot will also seek to engage constructively with the Company. This will prevent Bitfarms from utilizing its limited cash resources to safeguard the interests of its stakeholders against Riot’s actions,” stated Bitfarms.”
Jason Les, the CEO of Riot, has asserted that certain actions taken by Bitfarms to impede the acquisition were “in direct conflict with established legal and governance standards.”
Bitfarms shares, which trade under the ticker BITF on the Nasdaq, were trading at $2.50 at publication, down over 20% since June 17. Bitfarms’ market capitalization is approximately $1 billion, in contrast to Riot’s market capitalization of over $2.8 billion.
