Bitfarms Sets October Shareholder Vote Amid Riot’s Acquisition Activity

Bitcoin mining company Bitfarms will hold a shareholder vote in October on its takeover bid by Riot Platform, according to a July 12 statement.

The miner announced that its shareholders registered as of September 26, 2024 will be able to vote at a special general meeting convened at Riot’s request.

Takeover Offer

This is the latest stage in the protracted takeover battle between Riot and Bitfarms.

In April, Riot attempted to acquire Bitfarms for about $950 million. However, Bitfarms rejected the unsolicited offer and claimed it significantly undervalued the company.

Riot has since stepped up its efforts, creating a dedicated website to educate Bitfarms shareholders and calling a special meeting to restructure the rival mining company’s board by removing CEO Nicolas Bonta and director Andrés Finkielsztain from their positions.

Riot says the moves are necessary because the current board is putting the interests of directors above those of shareholders.

Bitfarms, however, has argued that Riot’s request for a meeting is part of its efforts to “opportunistically acquire” it after its failed $950 million bid in April. The miner said Riot’s request would disrupt its process of reviewing strategic alternatives and evaluating opportunities to maximize shareholder value.

Bitfarms further pointed out that Riot requested the record date for the shares following a hearing at the Ontario Securities Commission on July 22 and 23. It added that Riot filed the motion to invalidate its shareholder rights plan and increase its stake in the rival company. Riot is Bitfarms’ largest shareholder, with a 14.9% stake in the miner.

Nevertheless, Bitfarms made its decision after a special committee composed of independent board members, as well as financial and legal advisors, set a date for the meeting and the determination of the right to the dividend.

In addition, Bitfarms called on Riot to work constructively to avoid depleting its limited cash resources and protecting the interests of its stakeholders.

Bitfarms recently appointed Ben Gagnon as CEO and Fanny Philip as an independent board member.

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