Bitfarms and Riot Platforms Clash Over Board Control and CEO Succession

Riot Platforms, a prominent mining firm, has announced plans to replace three board members of the Canadian mining company Bitfarms. This move follows Riot’s acquisition of a 14.9% stake in Bitfarms, just shy of the 15% threshold set by Bitfarms’ shareholder rights plan designed to prevent further acquisition. Riot aims to install John Delaney, Amy Freedman, and Ralph Goehring, who are independent of both companies, on Bitfarms’ board, according to Cointelegraph.

Bitfarms has seen a 36% stock price increase over the last month due to these takeover developments but experienced a 6% drop in the last 24 hours. Riot has criticized Bitfarms for being uncooperative and mishandling its CEO succession, with former CEO Geoffrey Morphy stepping down and filing a lawsuit against the firm in May. The interim CEO, Nicolas Bonta, might be among those replaced if Riot’s proposed changes are approved by shareholders. Riot initially proposed acquiring all Bitfarms’ common shares at $2.30 each but withdrew this offer, citing non-cooperation from Bitfarms’ current board. 

This board shakeup represents the latest step in Riot’s broader strategy to integrate with Bitfarms. In May, Riot’s acquisition offer valued Bitfarms at $950 million, triggering Bitfarms’ defensive ‘poison pill’ strategy to limit Riot’s stake. Riot remains committed to negotiating a beneficial merger with Bitfarms once the board is reconstituted.