U.S. publicly traded Bitcoin miner Bitfarms has postponed its annual general meeting of shareholders by a week to reevaluate Riot Platforms’ revised request.
Bitfarms (BITF) has rescheduled its originally scheduled meeting from October 29 to November 6 at the request of Riot Platforms (RIOT) on June 24. Riot revised its request, citing concerns about Bitfarms’ recent governance changes and the proposed acquisition of Stronghold Digital ahead of a special meeting on September 3 to vote on restructuring the Bitfarms board. Riot has advocated for additional changes to the Bitfarms board, citing the need for independent oversight and better governance practices to increase shareholder value.
Riot originally attempted to acquire the smaller mining competitor for around $950 million in April, and has since bought shares of Bitfarms, making it its largest shareholder. Riot currently owns around 19.9% of Bitfarms.
“The Bitfarms Board of Directors is focused on acting in the best interests of all Bitfarms shareholders,” Bitfarms said in a press release Monday. “In contrast, it is clear that Riot, a direct competitor of Bitfarms, is solely focused on taking steps to support its shareholders, not Bitfarms or its shareholders. Recognizing the significant costs and distractions associated with a proxy contest, the Bitfarms Special Committee is committed to working constructively with Riot to resolve the Amended Claims so that Bitfarms will not have to expend cash resources to protect the interests of its shareholders against Riot’s actions.”
The Bitfarms Special Committee proposed adding one mutually agreed upon director candidate to increase the size of the board to six members, along with a suspension period and other customary provisions.
Bitfarms shares were up 4.7% at $1.88 per share at press time. Riot shares were trading at around $650 per share.
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Jason is the U.S. News Editor for The Block. He previously worked as a staff writer and later as an editor at Benzinga, a financial news and data company. He led Benzinga’s daily market coverage and the publication’s expansion into cannabis, cryptocurrency, and sports betting verticals. He holds a bachelor’s degree in journalism from Central Michigan University and lives in the suburbs of Detroit, Michigan. Follow him on X @JasonShubnell.