Bitfarms questions Riot’s proposed board nominees amid takeover attempt

Bitfarms has questioned the qualifications of Riot Platforms’ proposed board candidates, accusing Riot of using governance reforms to cover up a takeover attempt.

Canadian Bitcoin (BTC) miner Bitfarms has opposed rival Riot Platforms’ proposed board changes, accusing the company of attempting to take over at a discounted price.

The Toronto-based company objected to Riot Platforms’ efforts to make changes to the company’s board in a September 4 press release, framing the move as part of a broader effort to “acquire Bitfarms at a discounted price for the benefit of Riot shareholders.”

Riot, Bitfarms’ largest shareholder with a 19.9% ​​stake, is pushing for management changes ahead of a special meeting on October 29. Bitfarms has countered Riot’s claims that the board changes are necessary to address “broken governance,” stating that the proposal is primarily in the interest of Riot shareholders rather than Bitfarms shareholders.

“Riot has refused to engage constructively with us […] and instead engaged in public attacks and actions to harm the interests of other Bitfarms shareholders.”

Flea farms

The Canadian miner also defended its strategic plan, which includes recent leadership changes and the $175 million acquisition of Stronghold Digital Mining, saying, “It is not clear how Riot’s candidates can strengthen the board.”

According to Bitfarms, the acquisition is in line with the company’s strategy to diversify its power sources and expand its energy portfolio into the US, aiming to increase its capacity to over 950 MW by 2025.

Riot expressed concerns about the Stronghold deal in a Sept. 3 statement, describing Bitfarms’ recent governance actions as “defensive” steps to entrench its current board of directors. Riot defends the selection of Amy Freedman and John Delaney to replace the two current directors, citing the need for “fresh perspectives” to increase shareholder value.