Bitfarms Sets Date for Crucial Board Elections Amidst Riot Platforms’ Proposals – Bitcoin Mining Sector Update

• Bitcoin mining giant Bitfarms has scheduled a critical shareholder meeting.
• This meeting stems from a request by Riot Platforms to reconfigure the board of directors.
• Shareholders recorded as of September 26, 2024, will have the right to vote at this gathering.

Bitfarms sets a decisive date for board reorganization following Riot Platforms’ call for action.

Bitfarms Schedules Special Shareholder Meeting

Bitfarms, a major player in the Bitcoin mining industry, has set October 29, 2024, for a special shareholder meeting upon the requisition by Riot Platforms. This meeting’s primary agenda will be to vote on the reconstitution of Bitfarms’ board of directors.

The Catalyst: Riot Platforms’ Request

In a statement, Bitfarms explained that shareholders as of the record date, September 26, 2024, are eligible to vote. However, there are no immediate actions required from shareholders at this moment. The request by Riot Platforms, which holds 14.9% of Bitfarms’ shares, aims to remove current board members, including Chairman and Interim CEO Nicolas Bonta, and board member Andrés Finkielsztain.

Riot’s Influence and Proposals

Riot Platforms has proposed the election of new board members: John Delaney, Amy Freedman, and Ralph Goehring. Despite having appointed a new CEO, Ben Gagnon, in July, Bitfarms is under pressure to swiftly reconsider and potentially restructure its leadership in response to Riot’s proposal.

Strategic Defense: The Poison Pill Mechanism

Bitfarms has indicated that issues raised by Riot could have been addressed during their annual general meeting, suggesting that this special meeting is responsive rather than preemptive. Concurrently, Bitfarms has employed a poison pill strategy, a common defense mechanism against hostile takeovers, signaling its intent to protect its independence and shareholder value.

Conclusion

As this significant meeting approaches, stakeholders are poised to make crucial decisions that will shape Bitfarms’ future governance and strategic direction. Shareholders will be closely reviewing both the proposed changes and the performance of the current leadership, forecasting pivotal decisions that could impact the Bitcoin mining landscape.