Bitfarms and Riot Reach Agreement With New Board Appointments

Author

Hongji Feng

Author

Hongji Feng

About Author

Hongji is a crypto and tech reporter. He graduated from Northwestern University's Medill School of Journalism with a Bachelor's and a Master's. He has previously interned at HTX (Huobi Global),...

Author Profile

Share

Copied

Last updated:

September 23, 2024 10:56 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Bitfarms and Riot Platforms announced on September 23, 2024, that they have reached a settlement agreement involving new board appointments and a standstill arrangement lasting until 2026.

According to a press release shared with Cryptonews, the agreement will see Andrés Finkielsztain stepping down from Bitfarms’ board, with Amy Freedman joining as a new director.

Settlement Agreement Between Bitfarms and Riot Platforms

The agreement includes Riot withdrawing its previous requisition and restricting its actions until the 2026 Bitfarms Annual Meeting, with a few outlined exceptions.

This standstill agreement is aimed at ensuring stability within Bitfarms’ governance structure over the next two years.

Additionally, Bitfarms will propose expanding its board from five to six members at a special meeting, where shareholders will vote on the new independent director nominee.

“We recognize the importance of refreshment and having the right mix of skills, experience and diversity, and we are always open to adding qualified candidates with valuable insights and perspectives to strengthen our Board,” said Independent Chairman Brian Howlett.

Future Plans and Upcoming Meeting

The agreement also grants Riot certain rights to purchase additional shares in Bitfarms, provided it maintains a holding of 15% or more of the company’s outstanding common shares.

Bitfarms has outlined a shareholder rights plan that will be voted on at the upcoming special meeting.

This plan seeks to provide a structured approach for any potential changes in ownership of Bitfarms shares.

“We remain focused on diversifying the business beyond Bitcoin mining into exciting and synergistic new areas like energy generation, energy trading, heat recycling and other high value revenue streams like HPC/AI,” said Bitfarms CEO Ben Gagnon.

The special meeting, originally scheduled for November 6, may be postponed to accommodate these new proposals. However, Bitfarms has assured shareholders that the meeting will not be delayed beyond November 20, and updates will be provided as they become available.