Riot Platforms, Inc., Bitfarms Ltd.’s largest shareholder, has called for a special shareholder meeting to reconstitute the Bitfarms Board of Directors.
As per the June 24 press release, Riot said that it owns a 14.9% stake in Bitfarms, which has just enacted a shareholder rights strategy to restrict future acquisitions. Riot intends to replace three board members and remove any new directors chosen following the announcement.
Riot intends to replace Bitfarms Chairman and Interim CEO Nicolas Bonta, director Andrés Finkielsztain, and any new hires who fill the void created by co-founder Emiliano Grodzki. Riot claims inadequate corporate governance and a failure to recognize Bitfarms’ potential as reasons for the proposed reforms.
The special meeting will provide shareholders the opportunity to vote on the proposed modifications. Riot also intends to remove any more directors nominated following the announcement. Riot suggested three independent candidates: John Delaney, Amy Freedman, and Ralph Goehring.
The company said, “Riot has informed the Bitfarms Board that it has formally withdrawn its previous proposal to acquire all Bitfarms common shares at a price of US$2.30 per share and stands ready to engage and negotiate with a reconstituted Bitfarms Board to pursue a mutually beneficial combination of Bitfarms and Riot.”
Bitfarms’ Nasdaq stock price has risen by more than 36% in the last 30 days as a result of the takeover proposals but has fallen by almost 6% in the previous 24 hours. Cointelegraph contacted Bitfarms for comment but did not receive a response at the time of publication.
The mining corporation said that Bitfarms’ board was “unwilling to engage constructively” in the takeover and that the company had “botched its CEO succession process.”
Former Bitfarms CEO Geoffrey Morphy resigned in May after initiating a lawsuit against the company. Nicolas Bonta has been functioning as interim president and CEO, but if the shareholder appeal is successful, he may be removed from one of Riot’s three board seats.
The plan to restructure Bitfarms’ board was the latest stage in Riot’s strategy to take over Bitfarms. Riot made an offer to buy the mining company for $950 million in May and gradually increased its position until Bitfarms applied its ‘poison pill’ plan, which limited any holdings to 15%.
Also Read: Bitfarms’ Stock Surges 47% as Riot Takeover Attempt Heats Up
