Riot and Bitfarms Bury the Hatchet: A New Chapter in Bitcoin Mining
2024-09-24

Bitcoin mining firms Riot Platforms and Bitfarms have reached a settlement agreement, marking the end of Riot’s attempted hostile takeover of its rival, The Block reported on September 23.
The agreement brought about notable changes in Bitfarms’ board composition. According to the joint announcement, Bitfarms co-founder Andres Finkielsztain has stepped down from his board position. In his place, Amy Freedman, who was proposed by Riot, has joined the board effective immediately. The Block noted that Freedman brings over 25 years of experience in corporate governance and capital markets to her new role.
As part of the settlement, Riot Platforms has agreed to withdraw its amended requisition. The company has also accepted certain standstill provisions that will remain in effect until Bitfarms’ 2026 annual meeting, with some exceptions, as stated in the announcement.
The agreement comes just before a special meeting of Bitfarms shareholders that was originally set for November 6. While this meeting will still take place virtually, it may be postponed, The Block reported. The delay is to accommodate the nomination of an additional independent director and to allow a vote on Bitfarms’ shareholder rights plan. Interestingly, Riot has agreed to vote in favor of this plan. The companies have stated that if delayed, the meeting will not be held later than November 20.
Bitfarms CEO Ben Gagnon expressed satisfaction with the agreement, stating that the company can now focus on executing its growth strategy. Gagnon outlined plans to diversify the business beyond Bitcoin mining, mentioning potential ventures into energy generation, energy trading, heat recycling, and other high-value revenue streams such as high-performance computing and artificial intelligence.
Riot CEO Jason Les also viewed the agreement positively, describing it as a significant step towards creating value for shareholders of both companies. Les acknowledged Riot’s position as Bitfarms’ largest shareholder and expressed anticipation of supporting the reconstituted Bitfarms board and maintaining engagement with management.
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