The battle for dominance continues. Bitfarms, a prominent Bitcoin miner, has taken a significant step in responding to Riot Platforms’ attempted takeover. The company has now set a date for a special shareholder meeting, where crucial decisions regarding its board of directors will be made.
Bitfarms Sets October 29 for Shareholder Meeting
Bitfarms has announced that it will hold a special meeting of its shareholders on October 29, 2024. This meeting is in response to a requisition submitted by Riot Platforms for a shareholders’ meeting on June 24. At this special meeting, Bitfarms’ shareholders will have the opportunity to vote on reconstituting the company’s board of directors, a crucial step in Riot’s attempted acquisition of its Bitcoin mining rival.
“Bitfarms remains committed to constructive engagement with its shareholders and is hopeful that Riot will seek to constructively engage with the company so that Bitfarms need not expend its limited cash resources to protect the interests of its stakeholders against the actions of Riot.”
Riot’s Takeover Attempt and Bitfarms’ Response
Riot Platforms, a company with a market capitalization of $2.7 billion, had previously attempted to acquire Bitfarms for approximately $950 million in April. However, last month, Riot withdrew its previous offer to acquire the company for $2.30 per share, citing “the current board’s lack of meaningful engagement.”
Since the initial deal was thwarted, Riot has been steadily increasing its stake in Bitfarms, and as of now, it owns about 60 million shares, or 14.9%, of the company.
In response, Bitfarms adopted a “poison pill” approach in June to prevent a possible takeover. This measure would dilute the stake of any entity that accumulates more than 15% of the company’s shares (increased to 20% after September 10).
Bitfarms’ Board Reconstitution and Riot’s Proposed Candidates
At the special shareholder meeting, Bitfarms’ shareholders will vote on the removal of Nicolas Bonta, the chairman and interim CEO, as well as director Andrés Finkielsztain. They will also vote on the removal of Fanny Philip, who recently filled the vacancy left by co-founder Emiliano Grodzki after he was removed from the board at the shareholders’ annual meeting.
Riot has put forth three candidates for the Bitfarms board: John Delaney, an expert in government and public affairs; Amy Freedman, a corporate governance and capital markets expert; and Ralph Goehring, a financial and energy expert with extensive public company CFO experience.
Bitfarms has argued that Riot could have raised these issues at the company’s annual general meeting on May 31 and has yet to propose a new corporate strategy for the company.
The battle for control over Bitfarms continues as the cryptocurrency industry witnesses another high-stakes takeover attempt. Investors and industry observers will closely follow the upcoming special shareholder meeting, as the outcome could have significant implications for the future of the Bitcoin mining landscape.
