After months of disputes, Bitcoin miners Bitfarms and Riot Platforms have resolved their differences, leading to changes in the Board of Directors of the former. In the settlement, announced on September 23, Andrés Finkielsztain has stepped down from Bitfarms' board.
Board Restructuring
Finkielsztain's departure paves the way for the appointment of Amy Freedman, who will reportedly join both the Governance and Nominating Committee and the Compensation Committee. According to the company, this move reflects Bitfarms' strategy to refresh its leadership team with diverse perspectives and expertise.
Additionally, the settlement includes an agreement that prohibits Riot from taking further hostile actions against Bitfarms until the 2026 annual meeting. This arrangement means Riot, which holds a significant stake in Bitfarms, will not increase its ownership above a specified threshold or propose additional board changes in the interim.
We are pleased to announce that #Bitfarms has entered into a definitive settlement agreement with @RiotPlatforms.For more details, see the full release here: https://t.co/U5H6EMxgf7#Bitcoin #BitcoinMining #BITF pic.twitter.com/EJYfCxD2RA
— Bitfarms (@Bitfarms_io) September 23, 2024
Speaking about the agreement, Ben Gagnon, the Chief Executive Officer of Bitfarms, said: “We are pleased to reach this agreement with Riot and look forward to turning our full attention to executing our growth strategy. We remain focused on diversifying the business beyondBitcoin mining into exciting and synergistic new areas like energy generation, energy trading, heat recycling, and other high-value revenue streams like HPC/AI.”
Bitfarms Eyes Growth Strategy
In the upcoming special shareholder meeting, Bitfarms will reportedly propose expanding its board from five to six members. Shareholders will also vote on the nomination of an independent director to fill this newly created position.
Bitfarms also expressed confidence in the agreement's potential to enhance strategic oversight. The company acknowledged Finkielsztain's contributions during his tenure and welcomed Freedman's experience in public company advisement.
Early this month, Bitfarms rejected Riot's claims about a hostile takeover attempt. The former accused the latter of trying to undermine the company for its own gain. Amid the escalating conflict between the two mining giants, Bitfarms issued a public statement to address Riot's “misleading claims.”
The matter involved a dispute that arose when Riot attempted to acquire Bitfarms at what the latter described as a discounted price. Bitfarms mentioned that the offer only served Riot's interests. Besides that, Bitfarms mentioned that Riot had refused to engage in meaningful negotiations and had not signed a non-disclosure agreement or provided a counter-proposal.
This article was written by Jared Kirui at www.financemagnates.com.
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