Bitcoin Miner Riot Reveals Major Progress in Bitfarm Takeover Plan

Bitcoin mining giant Riot Platforms has revealed a bold strategy to accelerate its acquisition of Bitfarms. In its latest move, Riot has launched a dedicated website to educate shareholders on Bitfarms’ corporate governance issues and its board reconstitution plans.

It’s worth noting that this marks a significant shift in Riot’s approach to the acquisition, with a focus on management changes to facilitate a potential merger.

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Riot Platforms recently launched a website, “www.ABetterBitfarms.com,” aimed at mobilizing support for a proposed overhaul of Bitfarms’ board of directors. The site serves as a platform for shareholders to learn about perceived governance failures at Bitfarms and Riot’s plan to bring in new management.

In the meantime, according to a press release from Riot, the goal is to reconvene the board to address these concerns and pave the way for a constructive dialogue about a potential acquisition. Interestingly, the cryptocurrency mining company has nominated three independent directors: John Delaney, former mayor of Jacksonville; Amy Freedman, former CEO of Kingsdale Advisors; and Ralph Goehring, a former energy sector CFO.

Riot believes these candidates will bring much-needed corporate governance experience and new perspectives to Bitfarms. This strategy comes after Riot withdrew its $2.30-per-share offer and instead focused on acquiring three board seats to influence the company’s direction.

Meanwhile, Riot’s bold move comes after a previous $950 million takeover bid for Bitfarms was rejected. Disappointed by what it describes as weak management that has stymied productive discussions, Riot is now pushing for leadership changes to ensure a serious dialogue about the merger can take place.

Riot’s Investment Trust, which owns a 15% stake in Bitfarms, has been outspoken about the need for management changes to unlock shareholder value and accelerate merger talks.

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A Closer Look at the Report

Riot previously called for a special general meeting of shareholders at Bitfarms to discuss governance changes, including a vote to remove CEO Nicolas Bonta and director Andrés Finkielsztain. The meeting will also discuss the appointment of new directors proposed by Riot.

Meanwhile, the Bitcoin miner has criticized Bitfarms’ current management for its handling of corporate governance, accusing it of failing to unlock the company’s value and hindering productive merger talks. The company also says that new management is necessary to create a constructive environment for acquisition talks.

By championing these changes, Riot aims to restore shareholder confidence and introduce new ideas to propel Bitfarms forward. The proposed board changes are key to Riot’s acquisition strategy, as they believe a reconstituted board will be more receptive to their merger proposals.

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