Bitcoin mining company Riot Platforms (RIOT) has withdrawn its acquisition proposal for Bitfarms (BITF), a rival bitcoin miner. Riot, which holds a 14.9% stake in Bitfarms and is its largest shareholder, announced its intention to instead focus on reconstituting Bitfarms' board of directors, according to a CoinDesk report.
Riot Requisitions Special Meeting of Bitfarms Shareholders and Nominates Three Highly Qualified, Independent Directors to Bring Urgently Needed Change to Bitfarms Board.
— Riot Platforms, Inc. (@RiotPlatforms) June 24, 2024
Read the full press release here: https://t.co/8DHy75xC3i.
After attempts to engage with Bitfarms' board on a potential merger, Riot stated that “good faith negotiations simply will not be possible until there is real change in the Bitfarms boardroom,” as stated in the press release. Riot has nominated John Delaney, Amy Freedman, and Ralph Goehring as candidates to replace current board members of Bitfarms. They aim to remove Bitfarms' Chairman and interim CEO Nicolas Bonta, director Andrés Finkielsztain, and any additional directors appointed after the press release date.
Riot's original takeover bid, disclosed last month, proposed to purchase Bitfarms at $2.30 per share. Bitfarms quickly rebuffed this offer and subsequently enacted a shareholder rights plan, also known as a “poison pill,” to thwart Riot's acquisition attempts.
Riot's press release detailed the rationale behind its requisition for a special meeting of Bitfarms shareholders to overhaul the Bitfarms Board. Riot argues that the current board's governance practices have hindered Bitfarms' potential and that new, independent directors are urgently needed to rectify the company's alleged governance issues.
