- Canadian Bitcoin miner Bitfarms (TSX:BITF) and its global rival, Riot Platforms (NDAQ:RIOT) have reached a settlement agreement
- Under the terms of the agreement, Andrés Finkielsztain has stepped down from Bitfarms’ board of directors while Amy Freedman has been appointed to its board and the governance and nominating committee and compensation committee of the board
- Riot has agreed to withdraw its June 24, 2024, requisition and to accept customary standstill provisions after its unsolicited C$1.3 billion takeover bid and Bitfarms’ “Poison Pill” move to prevent Riot from having a controlling stake
- Riot Platforms Inc. last traded at C$9.73 per share and Bitfarms Ltd. last traded at C$2.72 per share
Canadian Bitcoin miner Bitfarms (TSX:BITF) and its global rival Riot Platforms (NDAQ:RIOT) have reached a settlement agreement.
Under the terms of the agreement, Andrés Finkielsztain has stepped down from Bitfarms’ board of directors while Amy Freedman has been appointed to its board and the governance and nominating committee and compensation committee of the board. She is currently an advisor to Ewing Morris and Co. Investment Partners and a director on the board of Mandalay Resources Corp. (TSX:MND), among others.
Riot has agreed to withdraw its June 24, 2024, requisition, as amended, and to accept customary standstill provisions through the Bitfarms 2026 annual meeting, with certain exceptions. The company has provided Riot with certain rights to purchase shares of the company provided Riot holds 15 per cent or more of its outstanding common shares.
After its unsolicited C$1.3 billion takeover bid, Riot had been pushing its ownership of Bitfarms to nearly 19 per cent over the summer, pushing Bitfarms to inject a “Poison Pill” move to prevent Riot from having a controlling stake. Ontario Capital Markets Tribunal had to step in and terminate that manoeuvre.
“The Bitfarms Board is committed to effectively overseeing the execution of the company’s strategic plan as we work to position Bitfarms to capitalize on the opportunities ahead,” Brian Howlett, independent chairman of the board, said in a news release. “Additionally, we recognize the importance of refreshment and having the right mix of skills, experience and diversity, and we are always open to adding qualified candidates with valuable insights and perspectives to strengthen our board. We are pleased to reach this agreement with Riot, which we believe is in the best interests of all Bitfarms shareholders.”
Riot Platforms Inc. is a Bitcoin mining and digital infrastructure company with operations in central Texas and electrical switchgear engineering and fabrication operations in Denver, Colorado.
Bitfarms Ltd., established in 2017, is a global Bitcoin mining company that operates 12 facilities across Canada, the United States, Paraguay and Argentina.
Riot Platforms Inc. (NDAQ:RIOT) last traded at C$9.73 per share and has lost more than 53 per cent since the year began while Bitfarms Ltd. (TSX:BITF) last traded at C$2.72 per share and has lost nearly 30 per cent since the beginning of the year.
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(Top photo: Bitfarms Ltd.)