Bitcoin mining companies Bitfarms and Riot Platforms have announced a settlement agreement. This brings an end to their months-long feud over corporate governance and strategic direction.
The agreement was announced by Bitfarms and includes major changes to Bitfarms’ Board of Directors and voting commitments from Riot.
The Bitfarms’ special meeting of shareholders was originally scheduled for November 6, 2024. However, it will now be held virtually at a date to be announced.
Bitfarms’ Board of Director steps down as part of the agreement
As per the agreement terms and conditions, Andrés Finkielsztain has stepped down from Bitfarms’ Board of Directors.
In his place, Amy Freedman has been appointed to the Board. He will join the Governance and Nominating Committee and Compensation Committee.
Riot has withdrawn its June 24, 2024 requisition and agreed to standstill provisions through Bitfarms’ 2026 Annual Meeting.
At the upcoming special meeting, shareholders will vote on expanding the board from five to six members. They will also speak about electing an independent director nominated by the Board. Riot has committed to voting in favor of these proposed changes.
Brian Howlett, Independent Chairman of Bitfarms’ Board, stated, “We are pleased to reach this agreement with Riot, which we believe is in the best interests of all Bitfarms shareholders.”
Origins of the Bitfarms-Riot Feud
The conflict between Bitfarms and Riot Platforms began in April 2024 when Riot attempted to acquire Bitfarms. Bitfarms rejected this offer and described it as a “discounted price” that undervalued the company. The firm also stated that the offer primarily benefited Riot’s shareholders rather than its own.
The situation escalated as Riot publicly criticized Bitfarm’s leadership and strategic decisions. In response, Bitfarms issued a statement labeling Riot’s claims as “misleading.” Bitfarms also accused Riot of attempting to destabilize its operations through public attacks.
The feud reached a new height on September 3, 2024, when Riot sent an open letter to Bitfarms’ shareholders. This letter urged them to halt all transactions until after an upcoming shareholder meeting.
