Bitfarms postpones ‘special meeting’ over Riot’s board change demand

Bitcoin ( BTC ) mining firm Bitfarms rescheduled its October shareholders “special meeting” to Nov. 6 in response to calls for changes to the company’s board of directors from its largest shareholder, Riot Platforms.

On Sept. 3, Riot issued an open letter to Bitfarms shareholders detailing its ongoing efforts to “address Bitfarms’ broken governance,” which includes appointing Ben Gagnon as CEO and a member of the Bitfarms Board.

However, Gagnon joined the board following the departure of two Bitfarms co-founders, Emiliano Grodzki and Nicolas Bonta. Riot recommended a more proactive approach to preserve shareholders’ interests:

“Bitfarms needs additional truly independent directors with the experience and expertise to ensure that decisions about the Company’s strategy moving forward reflect what is best for all shareholders.”

Bitfarms counters Riot Platforms’ strategy

In response to Riot’s demand for a change in the board members, Bitfarms rescheduled the “special meeting of shareholders” from Oct. 29 to Nov. 6. 

Related: Bitfarms responds to Riot Platforms’ proposed board changes

According to the company, the extension will allow Bitfarms and its shareholders to review and evaluate Riot’s demands and long-term implications.

Source: Bitfarms  

Both crypto mining companies, Riot Platforms and Bitfarms, claim to act in the best interests of all Bitfarms shareholders and accuse each other of orchestrating a personal agenda. Countering Riot’s demands for additional independent directors, the Bitfarms special committee proposed a settlement agreement forwarded to Riot:

“The addition of one mutually agreed upon Board nominee resulting in an increase of the size of the Board to six, and standstill and other customary provisions.”

Bitfarms shareholders will get to vote and share their thoughts on Riot-Bitfarms “proxy contest” during the November special meeting. 

Riot Platforms’ growing influence on Bitfarms

In August, Riot Platforms invested an additional $2.28 million to grow its ownership in Bitfarms to 18.9%. The purchase equated to acquiring 1 million Bitfarms common shares through open market purchases. 

As a result of the transaction, Riot’s total holdings in Bitfarms grew to 85.3 million shares, up from the previous 84.3 million.

At the time, Riot had indicated its intent to continue reviewing its investment in Bitfarms and consider further actions, including adjusting its position or proposing additional changes to the board composition.

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