Bitfarms and Riot Platforms Resolve Takeover Dispute
Bitfarms and Riot Platforms reached a settlement, limiting Riot’s stake in Bitfarms to 20% unless approved by the board.
Key points:
- Hostile takeover halted: Riot’s attempt to acquire Bitfarms has paused.
- Board changes: Bitfarms co-founder steps down; Amy Freedman joins.
- Ownership cap: Riot can’t own more than 20% without approval.
- Shareholder meeting: May be delayed, but not beyond November 20.
- Focus on growth: Bitfarms looks to expand beyond Bitcoin mining.
Settlement Brings an End to Riot’s Takeover Attempt:
The long-running dispute between Bitfarms and Riot Platforms has ended with a settlement. Riot agreed to limit its stake to 20% of Bitfarms without board approval. Currently, Riot holds 19.9% of Bitfarms’ shares.
As part of the deal, Bitfarms co-founder Andres Finkielsztain resigned from the board. Amy Freedman, a corporate governance expert, has replaced him.
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The special shareholder meeting, initially set for November 6, might be delayed but will happen before November 20. This meeting will include votes on the company’s future and shareholder rights plan.
Bitfarms’ CEO Ben Gagnon expressed relief, stating the company can now focus on expanding into areas like energy trading and high-performance computing.
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Riot had previously made a $950M acquisition offer, which Bitfarms rejected. However, with Riot’s large stake, further interaction between the companies is likely.
