Riot and Bitfarms Bury the Hatchet: A New Chapter in Bitcoin Mining

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As a seasoned analyst with over two decades of experience under my belt, I find this development between Riot Platforms and Bitfarms to be a strategic move that could potentially reshape the Bitcoin mining landscape. The appointment of Amy Freedman, who boasts over 25 years of corporate governance and capital markets expertise, seems like a wise decision for Bitfarms as they navigate through these challenging times.

According to a report by The Block on September 23, Bitcoin mining companies Riot Platforms and Bitfarms have come to an agreement, concluding Riot’s attempt at a hostile takeover of competitor Bitfarms, signifying the end of this potential merger.

As a researcher, I’ve observed significant shifts in Bitfarms’ board structure following a recent agreement. According to the joint statement, Andres Finkielsztain, one of Bitfarms’ co-founders, has vacated his position on the board. Stepping into this role, effective immediately, is Amy Freedman, who was proposed by Riot. The Block highlighted that Freedman boasts more than two decades of expertise in corporate governance and capital markets, which she will bring to her new position.

In the terms of the agreement, Riot Platforms will retract its revised demand. Additionally, they have consented to certain “temporary halt” conditions that will stay active until Bitfarms’ 2026 shareholders meeting, with specific exceptions outlined in the statement.

Prior to the scheduled virtual shareholders’ meeting of Bitfarms, which was initially slated for November 6, there might be a delay. This is due to the inclusion of an extra independent director and to enable a vote on Bitfarms’ shareholder rights plan. Notably, Riot has consented to back this plan. The companies have communicated that if postponed, the meeting will not extend past November 20.

Ben Gagnon, Bitfarms CEO, expressed his contentment with the deal, explaining that it allows the company to concentrate on implementing its growth plan. Gagnon detailed aspirations to expand the business beyond Bitcoin mining, hinting at possible forays into energy production, energy trading, heat reclamation, and other profitable income sources like high-performance computing and artificial intelligence.

In simpler terms, Jason Les, CEO of Riot Blockchain, also welcomed the agreement, calling it a crucial move towards generating value for shareholders from both companies. Les acknowledged that Riot is Bitfarms’ largest shareholder and is eager to back the revamped Bitfarms board and continue collaborating with management.

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2024-09-23 21:27