Riots Bold Move: Special Meeting Called to Reconstruct Bitfarms Board Amid Acquisition Withdrawal

By Divya Jun 24, 2024 #Bitfarms
Riot's Bold Move

## Riot Takes Action: Special Meeting, Acquisition Withdrawal, and Board Reconstruction

Riot Platforms, the U.S.-based cryptocurrency mining firm, has called for a special meeting of Bitfarms shareholders in a bold move to revamp the company’s leadership and governance.

### Special Meeting and Board Reconstitution

Riot, which currently owns 14.9% of Bitfarms, aims to reconstitute the board by replacing three members: interim CEO Nicolas Bonta, director Andrés Finkielsztain, and any appointee following Emiliano Grodzki’s resignation. Riot alleges that Bonta and Finkielsztain have mismanaged corporate governance and hindered Bitfarms’ growth.

To fill these positions, Riot has nominated three individuals: John Delaney, Amy Freedman, and Ralph Goehring. They have expertise in government affairs, corporate governance, and financial management, respectively.

### Withdrawing Acquisition Proposal

Riot has also officially withdrawn its previous $950 million acquisition proposal for Bitfarms. The company states that “engaging with the incumbent Bitfarms board on a potential combination is just not possible.”

Riot believes that Bitfarms’ poor governance practices and lack of transparency have made it difficult to negotiate in good faith. The company emphasizes that “real change” in the boardroom is necessary for future discussions to be meaningful.

### Shareholders’ Vote

Bitfarms shareholders will have the opportunity to vote on Riot’s proposed changes at the special meeting. Riot contends that these changes are essential for Bitfarms to overcome its current challenges and unlock its full potential.

Additional Context

Bitfarms has resisted Riot’s acquisition attempts and adopted a “poison pill” strategy to prevent hostile takeovers. The two companies have been at odds since Riot’s unsolicited offer in April, which Bitfarms deemed undervalued.

Cryptocurrency mining firms, like Riot and Bitfarms, are seeking growth opportunities to offset the impact of Bitcoin’s recent “halving,” which has reduced miners’ rewards.


Riot’s latest actions highlight the ongoing power struggle between the two companies. Shareholders will play a crucial role in determining the future of Bitfarms and whether Riot’s efforts to restructure the board will be successful. The outcome of this battle will have implications for the cryptocurrency mining industry as a whole.

By Divya

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