Bitfarms has set a special meeting of shareholders for October 29, 2024, as reported on Tuesday. This meeting will consider Riot Platforms’ request to reshuffle Bitfarms’ board of directors, which is another turn in the struggle for the control of the competitor.
Shareholders to Vote on Board Reconstitution
Bitfarms’ shareholders will vote on removing Nicolas Bonta, interim CEO and chairman, and director Andrés Finkielsztain. Ben Gagnon, recently appointed CEO, is not up for removal as he does not currently serve on the board. Fanny Philip, who filled a vacancy after Emiliano Grodzki’s removal, is also targeted for removal.
Riot proposes John Delaney, Amy Freedman, and Ralph Goehring as new board members, bringing expertise in government affairs, corporate governance, and financial management.
Bitfarms established the record date for voting as September 26, 2024. A special committee of independent directors, with financial and legal advisors, reviewed Riot’s requisition before deciding on the meeting.
Riot’s Persistent Takeover Efforts
Riot Platforms’ takeover attempts have intensified since April when they offered $950 million for Bitfarms. After Bitfarms’ board did not engage meaningfully, Riot withdrew its offer but continued to buy shares, becoming the largest shareholder with a 14.9% stake.
Bitfarms has countered these efforts by adopting a “poison pill” strategy to prevent any entity from accumulating over 15% of its shares before September 10, increasing to 20% afterward.
Bitfarms accused Riot of poor timing and argued that the issues could have been raised during the Annual General Meeting held on May 31st. Riot wants to block Bitfarms’ shareholder rights plan at a hearing before the Ontario Securities Commission on July 22 and 23.
The next shareholder meeting will be an important time for Bitfarms while dealing with the attempts of Riot to take over.
Also Read: Bitfarms Names Ben Gagnon As New CEO Following Leadership Shakeup
