Riot Platforms, a public U.S.-based Bitcoin mining company, has called for a special meeting of Bitfarms shareholders to reconstitute its board, citing urgent governance issues, after withdrawing its previous $950 million acquisition proposal.
Riot Platforms’ Strategic Move
Riot, which currently holds approximately 14.9% of Bitfarms, aims to reconstitute the Bitfarms board of directors by removing Bitfarms interim chief executive Nicolas Bonta, director Andrés Finkielsztain, and any recent appointee following Emiliano Grodzki’s resignation. According to a press release seen by crypto.news, the Colorado-headquartered company asserts that Bonta and Finkielsztain “bear direct responsibility for the Bitfarms board’s poor corporate governance practices and consistent inability to realize Bitfarms’ full potential.”
“Riot will also seek to remove any additional director appointed by the Bitfarms board after the date of this press release,” Riot Platforms stated.
Nominations for New Directors
To address the governance issues, Riot has nominated three new directors: John Delaney, Amy Freedman, and Ralph Goehring. These nominees are intended to replace Bonta and Finkielsztain, with the goal of “fixing Bitfarms’ broken corporate governance.”
Withdrawal of Acquisition Proposal
Riot’s latest move comes after months of attempts to engage with Bitfarms regarding a potential merger. Riot has now explicitly withdrawn its $950 million proposal to buy Bitfarms, stating that “engaging with the incumbent Bitfarms board on a potential combination is just not possible.”
Special Shareholder Meeting
The special meeting will allow shareholders to vote on the proposed changes, which Riot believes are essential due to the Bitfarms board’s mishandling of chief executive succession. Riot asserts that “good faith negotiations simply will not be possible until there is real change in the Bitfarms boardroom.”
This strategic shift underscores Riot’s determination to influence Bitfarms’ future direction and improve its governance practices. Shareholders will have the opportunity to weigh in on these significant changes aimed at enhancing Bitfarms’ corporate structure and overall potential.
