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Bitcoin mining firm Bitfarms fires CEO amid $27 million damages lawsuit

The BlockThe Block2024/05/13 14:28
By:The Block

Quick Take Bitfarms has sacked its CEO Geoffrey Morphy after he filed a lawsuit against the bitcoin miner claiming $27 million in damages for breach of contract. The company announced in March that Morphy would depart as CEO upon completion of its executive search but has now accelerated the termination.

Toronto-based Bitcoin mining firm Bitfarms fired CEO Geoffrey Morphy on Monday, effective immediately, after he filed a lawsuit against the company claiming $27 million in damages for breach of contract.

Previously President and COO, Morphy was promoted to CEO in December 2022. However, in March this year, Bitfarms announced Morphy would be departing the company upon completing its executive search, though he would continue to lead the mining firm in the interim to ensure a “smooth transition.”

“It has been the greatest privilege of my career to serve Bitfarms, our shareholders, and our employees. I am extremely proud of what we’ve accomplished as a team,” Morphy said at the time.

Yet, relations seem to have soured since. On Friday, Morphy filed a Statement of Claim in the Superior Court of Ontario against Bitfarms, claiming damages for breach of contract, wrongful dismissal and aggravated and punitive damages totaling $27 million, the firm said in a statement today.

Bitfarms believes the claims are without merit and intends to defend itself "vigorously," adding that Morphy no longer serves as a company director.

Chairman and co-founder of Bitfarms, Nicolas Bonta, has been appointed interim President and CEO. Bonta will lead the company until its executive search is completed and a successor appointed, expected in the next several weeks.

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Bitfarms’ Q1 conference call rescheduled

Bitfarms also announced that its first-quarter conference call, originally scheduled for today, would now be rescheduled to May 15 at 8 a.m. ET.

Bitfarms’ stock is currently trading for $1.55, according to TradingView. The firm’s share price has fallen over 10% following the news, compounding losses of more than 50% year-to-date.

BITF/CAD price chart. Image: TradingView .

Morphy did not immediately respond to a request for comment from The Block.


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