Key Points:
- Bitfarms Riot settlement passed after a months-long dispute, resolving issues over Riot’s hostile takeover attempt.
- Bitfarms co-founder Andrés Finkielsztain resigned, and Amy Freedman, a corporate governance expert proposed by Riot, was appointed to the board.
Bitfarms and Riot Platforms have resolved the long-simmering controversy between them, two of the most prominent Bitcoin miners in the world.
Read more: Riot vs. Bitfarms Heats Up As Bitfarms Responds To Misleading Claims
Bitfarms Riot Settlement Cleared After Takeover Tussle
The Bitfarms Riot settlement comes weeks ahead of a special shareholder meeting, previously set for November 6, which is likely pushed to November 20.
The spat began in April when Riot made an unsolicited $950 million bid to buy Bitfarms, headquartered in Canada. Bitfarms turned that offer down, calling it too low.
Bitfarms then implemented a so-called “poison pill“-actually, it is called a shareholder rights plan designed to block Riot from taking over the company. Riot currently owns close to 20% of Bitfarms’ shares and has accused the company of poor corporate governance. It also tried to interfere with Bitfarms’ strategic review process.
A primary element of the Bitfarms Riot settlement would appear to involve a shake-up of the Bitfarms board of directors. As per the pact, which called for the resignation of Andrés Finkielsztain as co-founder of Bitfarms, Amy Freedman, an expert in corporate governance and capital markets, took his place. She was one of three nominees advanced by Riot and also joined the Governance, Nominating, and Compensation Committees.
Riot and Bitfarms Relent to a Common Cause Aimed at Maximising Shareholder Value
Riot consented to voting for the proposed increase in the number of Bitfarm’s board members from five to six during the next meeting. The shareholders would be asked to vote for an independent director and approve the company’s shareholder rights plan.
Riot also withdrew its proposal to change the composition of the board and accepted typical standstill provisions until 2026 that prevented it from acquiring more than 20% of Bitfarms without the board’s approval.
The deal brings closure to a dispute that, at certain times, saw Riot drive hard to expand its presence in the competitive Bitcoin mining industry, while Bitfarms focused on protecting its shareholders and moving toward long-term growth.
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Source: Coincu
