After Riot Platforms wrote an open letter criticizing recent changes to Bitfarms’ board of directors, the company responded. Riot Platforms, which owns 19.9% of Bitfarms, said that the company’s leadership was “broken” and that more changes were needed.
Riot Platforms says that the planned special shareholder meeting on October 29, 2024, has something to do with governance problems, but Bitfarms says it doesn’t. The company says that Riot’s suggested changes are only meant to benefit Riot and not make Bitfarms’ management better.
In response, Bitfarms made it clear that Riot Platforms had nothing to do with the latest changes to the board and management. The company said that its strategic moves, such as its plan to buy the mining company Stronghold, were part of a larger plan to improve its business and focus more on energy in the United States.
Since Riot’s $950 million takeover bid earlier in 2024, the fight between Bitfarms and Riot Platforms has gotten worse. Bitfarms fought back against the aggressive takeover by putting in place a shareholder rights plan. Riot Platforms kept increasing its stock in Bitfarms and suggesting independent board candidates, even after a Canadian financial regulator said this plan was not valid. Riot Platforms has also said bad things about Bitfarm’s plan to buy other companies, especially the deal with Stronghold.
