Riot Platforms holds just under a 15% stake in Canadian mining firm Bitfarms and hopes to replace key board members with picks seeming favorable to its interests.
Cryptocurrency mining firm Bitfarms has scheduled a shareholder meeting in response to a request from Riot Platforms — the firm attempting a corporate takeover of Bitfarms.
In a July 12 notice, Bitfarms’ board said it would hold a shareholder meeting on Oct. 29 following claims Riot plans to “disrupt the strategic alternatives review process” the mining firm started. In May, Riot offered $950 million to acquire Bitfarms but has met resistance from the company, which is employing various tactics to impede the takeover.
After Bitfarms implemented a strategy to prevent Riot from acquiring a 15% or higher stake in the firm, Riot launched a campaign to replace three of the mining company’s board of directors with candidates seemingly friendly to its interests. Former Bitfarms CEO Geoffrey Morphy stepped down in May after filing a $27-million lawsuit against the firm. Nicolas Bonta acted as the interim CEO until Ben Gagnon’s appointment on July 8.
