Bitcoin mining firm Bitfarms has postponed its much-anticipated shareholders’ “special meeting” from October to November 6, 2024, following a demand by its largest shareholder, Riot Platforms, for changes to the company’s board of directors. The delay comes as Bitfarms evaluates Riot’s recommendations to ensure a well-informed decision is made.
Riot Platforms Calls for Board Overhaul
On September 3, Riot Platforms issued an open letter to Bitfarms shareholders, expressing concerns about the company’s governance. Riot proposed appointing Ben Gagnon as CEO and a member of Bitfarms’ board of directors. Gagnon recently joined the board after the departure of Bitfarms’ co-founders Emiliano Grodzki and Nicolas Bonta.
Riot has stressed the need for additional independent board members with strong expertise, stating, “Bitfarms needs additional truly independent directors… to reflect what is best for all shareholders.”
Bitfarms Counters Riot’s Demands
In response to Riot’s call for board changes, Bitfarms opted to reschedule the special meeting to November. This move is aimed at giving the company and its shareholders more time to evaluate Riot’s demands and assess the long-term implications.
Both Riot and Bitfarms claim to act in the best interests of Bitfarms’ shareholders, though they accuse each other of pursuing personal agendas. In response to Riot’s push for more independent board members, Bitfarms proposed a settlement, offering to add one mutually agreed-upon board member and expand the board to six directors. The settlement also includes typical standstill provisions, indicating a willingness to compromise.
Shareholders to Decide in November
During the rescheduled November 6 meeting, Bitfarms’ shareholders will have the opportunity to vote and share their opinions on what has become a proxy contest between the two mining giants. This meeting will be pivotal in deciding the future direction of Bitfarms’ leadership and corporate governance.
Riot Platforms Increases Stake in Bitfarms
Riot’s influence on Bitfarms has been growing steadily. In August, Riot invested an additional $2.28 million in Bitfarms, increasing its ownership to 18.9%. Riot now holds 85.3 million shares in the company, up from the previous 84.3 million. This strategic purchase signals Riot’s intent to take a more active role in shaping Bitfarms’ future, including its board structure and operational strategies.
At the time of the investment, Riot indicated it would continue to review its stake in Bitfarms and consider further actions, including proposing additional changes to the board.
