Riot Platforms has urged Bitfarms’ board to elect two independent directors to better govern the company.
Bitcoin mining company Riot Platforms has urged rival Bitfarms’ board to take adequate measures to restructure the board and go beyond reacting to pressure. Riot is Bitfarms’ largest shareholder, owning about 19.9% of the publicly traded Canadian miner.
It is not new information that Riot has tried to conduct a takeover of Bitfarms for some time now. However, in an open letter, Riot asked Bitfarms’ shareholders to keep the firm’s best interest in mind and elect two new independent directors, Amy Freedman and John Delaney. Their entry would replace current board members Andres Finkielsztain and Fanny Philip.
“Our focus remains on fixing Bitfarms’ broken governance to enhance value for all shareholders. In order to achieve this objective, additional fresh perspectives are required in Bitfarms’ boardroom,” Riot strongly urged in their open letter. Since Riot began pushing for changes in Bitfarms’ board, two of three of the latter’s co-founders resigned. While stating that the board’s efforts to get them out were right, Riot said Bitfarms should do more because those efforts “have been reactive and insufficient to address Bitfarms’ broken governance.” It maintained that allowing new independent directors is the right way, as their strategy will facilitate what is best for Bitfarms’ shareholders.
Riot Warns Bitfarms of Getting Into Financing Options That Go Against Investors’ Wishes
Riot further warned Bitfarms not to make any ill-informed decision before a Special Meeting scheduled for October 29, during which Riot will push for governance reforms. It specifically asked Bitfarms not to get into financing options that could impede the interest of all shareholders. If it does, “Riot will not hesitate to hold the incumbent directors personally accountable.”
