Riot Platforms, which has been working towards a takeover of Canadian mining firm Bitfarms, announced plans to replace three members of Bitfarms’ board of directors.
In a June 24 statement, Riot revealed it holds approximately a 14.9% stake in Bitfarms after the company implemented a shareholder rights plan to prevent any entity from acquiring more than 15% of its stock. Rather than continue buying Bitfarms shares, Riot aims to replace three board members and remove any additional directors appointed after its announcement.
“[It] is clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible,” Riot stated. “Riot has informed the Bitfarms Board that it has formally withdrawn its previous proposal to acquire all Bitfarms common shares at a price of US$2.30 per share and stands ready to engage and negotiate with a reconstituted Bitfarms Board to pursue a mutually beneficial combination of Bitfarms and Riot.”
Riot intends to replace the board members with three individuals who are completely independent of both Riot and Bitfarms: John Delaney, Amy Freedman, and Ralph Goehring.
Bitfarms’ stock price on the Nasdaq has risen by more than 36% in the last 30 days amidst the takeover efforts but fell roughly 6% in the past 24 hours.
Summary Review: Riot Platforms is pushing forward with its plan to gain more influence over Bitfarms by proposing new board members, signaling its commitment to a strategic combination of the two companies.
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