Bitfarms Sets Shareholder Vote Date Amid Riot Platforms’ Takeover Attempt
Bitcoin miner Bitfarms has scheduled a special meeting for its shareholders on October 29, 2024, to vote on the reconstitution of its board of directors. This meeting comes in response to a requisition submitted by Riot Platforms on June 24. Bitfarms shareholders eligible to vote at this meeting will be those recorded by September 26, 2024, according to Theblock.
The special committee of independent directors at Bitfarms, with the assistance of financial and legal advisors, reviewed Riot’s requisition and unanimously agreed on the meeting date and record date. The primary agenda includes voting on the removal of key figures such as Nicolas Bonta, the current chairman and interim CEO, and director Andrés Finkielsztain. Additionally, shareholders will vote on the removal of Fanny Philip, who recently replaced co-founder Emiliano Grodzki on the board.
Riot Platforms has proposed three new candidates for Bitfarms’ board: John Delaney, an expert in government and public affairs; Amy Freedman, a corporate governance and capital markets specialist; and Ralph Goehring, a financial and energy expert with extensive public company CFO experience.
Bitfarms criticized Riot for not raising these issues at their annual general meeting on May 31 and highlighted that Riot has not yet proposed a new corporate strategy for the company. Riot has requested that the record date for the shareholder vote be set after a scheduled hearing before the Ontario Securities Commission on July 22 and 23, where it aims to nullify Bitfarms’ shareholder rights plan.
In June, Bitfarms adopted a “poison pill” strategy to prevent a potential takeover. This plan stipulates that if any entity acquires more than 15% of Bitfarms’ shares before September 10, the company will issue additional shares to dilute the entity’s stake. After September 10, the threshold for this mechanism increases to 20%.
Riot Platforms, which attempted to acquire Bitfarms in April for approximately $950 million, has since become Bitfarms’ largest shareholder, owning around 60 million shares or 14.9% of the company. Riot’s market cap stands at $2.7 billion compared to Bitfarms’ $1 billion.
