According to Cointelegraph, Riot Platforms, Inc., the largest shareholder of Bitfarms Ltd., has issued an open letter to Bitfarms’ shareholders, urging additional changes to the company’s board of directors. The shareholder meeting is scheduled for October 29, where Riot will advocate for reforms aimed at enhancing governance and shareholder value.
Bitfarms, a publicly traded company based in Canada, focuses on the cryptocurrency industry, particularly Bitcoin (BTC) mining. Riot holds a 19.9% stake in Bitfarms and has acknowledged recent board changes, including the resignation of co-founders Emiliano Grodzki and Nicolas Bonta. However, Riot argues that these changes are insufficient and reactionary to public pressure. The company proposes the election of two independent directors, Amy Freedman and John Delaney, to replace current board members Andres Finkielsztain and Fanny Philip.
In its letter, Riot also cautions Bitfarms against taking actions that could entrench the existing board before the October 29 meeting. Riot emphasized that Bitfarms should allow shareholders to have their say and avoid steps that could adversely affect investors or provide an unfair advantage in the director election. Riot expressed concern that any financing transaction pursued by the current Bitfarms Board before the Special Meeting could be punitively dilutive to all shareholders, suggesting that more attractive financing options are available. Riot warned that if the Bitfarms Board takes actions to entrench itself at the expense of shareholders, incumbent directors would be held personally accountable.
On August 13, Bitfarms announced the appointment of CEO Ben Gagnon as a new board member amid Riot Platforms’ attempted takeover. Bonta, who served as Bitfarms’ interim president and CEO, stepped down from the board upon Gagnon’s entry. A Bitfarms spokesperson stated that the appointment of a CEO to a board is standard practice across public companies.
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