Board changes at Bitfarms amid revenue drop and Riot’s hostile takeover efforts

Bitfarms co-founder and president Nicolas Bonta is stepping down from the committee instantly amid the ongoing combat against Riot Platforms‘ hostile takeover bid, according to an Aug. 13 statement.

Bonta is 1 of 3 committee members Riot aims to replace successful the upcoming October shareholder vote.

Leadership change

In effect to Bonta’s departure, Brian Howlett, the pb director, volition presume the relation of autarkic chairman. Ben Gagnon volition measurement successful arsenic the caller CEO and articulation the board.

Additionally, Liam Wilson volition go the Chief Operating Officer (COO) connected Aug. 26.

Edie Hofmeister, Chair of the Governance and Nominating Committee, emphasized that Bitfarms’ Board is dedicated to gathering the close squad to instrumentality its strategical program and make semipermanent worth for its shareholders. He added:

“The Bitfarms Board is focused connected ensuring the Company has the close squad to oversee and instrumentality the Company’s strategical program to present worth successful the near- and long-term.”

Bitfarms’ leadership changes travel astatine a important time, arsenic the institution faces assertive acquisition attempts from Riot.

In April, Riot archetypal tried to acquire Bitfarms for astir $950 million, but the connection was rejected due to the fact that it undervalued the company.

Since then, Riot has go a important Bitfarms shareholder done important stock acquisitions, reaching 15.9%. It has besides criticized Bitfarms’ governance and called for the removal of the company’s board, which it claims prioritized the directors’ interests implicit those of shareholders.

Revenue declined successful Q2

These enactment changes came little than a week aft the Bitcoin miners revealed that their full gross had dropped to $42 million, a 16% alteration from the archetypal quarter.

The institution attributed the diminution to reduced artifact rewards aft Bitcoin’s halving lawsuit successful April. This year’s lawsuit slashed miners’ artifact rewards to 3.125 BTC per block, down from 6.25 BTC.

Additionally, Bitfarms reported operating losses of $23.6 million, which included $46 cardinal successful accelerated depreciation connected outdated mining equipment.

The station Board changes astatine Bitfarms amid gross driblet and Riot’s hostile takeover efforts appeared archetypal connected CryptoSlate.