Key Takeaways:
- Bitfarms and Riot Platforms settled a governance dispute, halting a takeover attempt and agreeing to a standstill until 2026.
- Bitfarms’ board will expand to six members, with Amy Freedman replacing AndrĂ©s Finkielsztain.
- Riot agreed to support the changes, concluding the conflict.
Bitfarms and Riot Platforms, two prominent Bitcoin mining firms, have settled a governance dispute that started when Riot, a major Bitfarms shareholder, proposed a $950 million buyout in May 2024.
After Bitfarms rejected the offer, Riot increased its stake and sought board changes, leading to tension between the companies.
We are pleased to announce that #Bitfarms has entered into a definitive settlement agreement with @RiotPlatforms.
— Bitfarms (@Bitfarms_io) September 23, 2024
For more details, see the full release here: https://t.co/U5H6EMxgf7#Bitcoin #BitcoinMining #BITF pic.twitter.com/EJYfCxD2RA
A “poison pill” defense was adopted by Bitfarms to prevent further takeover attempts.
The settlement, announced on September 23, 2024, includes a standstill agreement effective until 2026, with Riot refraining from increasing its stake or pushing for additional board changes.
As part of the resolution, Bitfarms’ board will expand from five to six members, pending shareholder approval by November 2024.
Riot Platforms, Inc. Early Warning Report Press Release Regarding Settlement Agreement With Bitfarms Ltd.
— Riot Platforms, Inc. (@RiotPlatforms) September 23, 2024
For more information, please visit: https://t.co/T9NbFeYdBJ.
Andrés Finkielsztain will step down, with Amy Freedman replacing him.
Riot has agreed to support these changes, effectively ending the prolonged governance conflict.
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