2 weeks ago
Riot Platforms has intensified its efforts to get rival Bitcoin miner Bitfarms by issuing an unfastened letter to the firm’s shareholders connected Sept. 3.
In the letter, Riot announced that it had lowered its petition for committee seats astatine Bitfarms to 2 autarkic directors following caller removals portion besides criticizing respective of the company’s caller decisions.
Criticism of Stronghold acquisition
Riot raised concerns astir Bitfarms’ caller acquisition of Stronghold, a woody valued astatine $175 million. According to the firm, this transaction represented a premium of implicit 100% compared to Stronghold’s closing stock terms the time earlier the announcement.
Riot pointed retired that nary different manufacture subordinate was consenting to wage specified a precocious terms for Stronghold, which had been efficaciously “for sale” for a sizeable period.
Considering this, Riot stated that the woody was not successful the champion interests of Bitfarms shareholders and urged the smaller miner not to participate into immoderate financing transaction earlier the completion of the October peculiar meeting. It added:
“Riot is profoundly acrophobic that immoderate transaction the existent Bitfarms Board volition prosecute volition beryllium punitively dilutive to each Bitfarms’ shareholders erstwhile determination are different much charismatic financing options available.”
Proposed committee changes
Riot, holding astir 20% of Bitfarms, had initially demanded 3 seats connected the smaller company’s board. However, owed to caller advancement successful addressing Bitfarms’ founder-led committee culture, Riot reduced its petition to 2 seats.
Riot has projected Amy Freedman and John Delaney arsenic candidates to regenerate 2 existing directors, co-founder Andres Finkielsztain and Fanny Philip. Riot emphasized that Finkielsztain, 1 of Bitfarms’ 3 co-founders, is partially liable for its cognition of the company’s troubled CEO succession process, which has seen 5 CEOs successful 5 years.
Riot assured that its nominees are wholly autarkic of some companies. It stated they would bring invaluable nationalist institution committee experience, firm governance oversight, and transaction expertise to the Bitfarms Board.
Last month, Bitfarms co-founder and president Nicolas Bonta stepped down amid broader enactment changes. This followed the earlier departure of different co-founder, Emiliano Grodzki, who was voted disconnected the committee astatine Bitfarms’ astir caller yearly meeting.
The station Riot Platforms targets remaining 2 Bitfarms committee members’ replacement appeared archetypal connected CryptoSlate.
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