Bitfarms and Riot reach settlement, reveal board changes

Bitfarms has reached a settlement agreement with Riot Platforms ahead of the company’s special shareholder meeting in November.

The Canadian-based Bitcoin (BTC) mining firm announced the agreement it reached with its rival on September 23. According to the terms of the agreement, Bitfarms appointed Amy Freedman as a board member, replacing Andrés Finkielsztain, who resigned.

In addition to the board changes, the deal includes a stay until the 2026 Bitfarms Annual Meeting. In the meantime, Bitfarms has granted Riot certain rights and allowed it to purchase BITF shares. Riot will have this provision as long as it holds 15% or more of Bitfarms’ issued common shares.

Following this development, the special meeting scheduled for November 6 may be postponed. However, according to details in a press release, the anticipated virtual event will not be postponed until after November 20, 2024.

Riot to support Bitfarms board

Bitfarms and Riot have been locked in a massive acquisition battle since April after US-based bitcoin mining giant Riot announced a $950 million takeover bid for its Canadian-based rival.

Although Riot has since increased its stake in Bitfarms, the company rejected the takeover offer, calling it undervalued. The dispute led to Bitfarms adopting a “poison pill” approach and Riot increasing its stake in Bitfarms.

Riot proposed new board members in early September, which prompted Bitfarms to postpone its extraordinary shareholder meeting.

Commenting on the development, Riot CEO Jason Les said the deal was an “important step” in adding value to shareholders of both companies. Les called it a “constructive solution” and noted that Riot would support Bitfarms’ reconstituted board. Riot is Bitfarms’ largest shareholder.

Shares of both companies opened higher on Monday, September 23.