Riot Platforms Urges Changes In Bitfarms Directors Ahead Of Krutial Meetings In October

Riot Platforms urged changes to Bitfarms directors ahead of a crucial meeting in October (Photo; Doc. Cryptorank)

JAKARTA - Riot Platforms, Bitfarms' largest shareholder, recently issued an open letter calling for additional changes to the company's board of directors. This step was taken ahead of a shareholder meeting scheduled for October 29. Riot Platforms, which owns 19.9% of shares in Bitfarms, believes that changes that have been made by the company are not enough to improve governance and increase value for shareholders.

Bitfarms, a Canadian-based company focused on the crypto asset industry, particularly Bitcoin mining, is facing pressure from Riot Platforms. Riot acknowledged recent changes to the board of directors of Bitfarms, including the resignation of two company founders, Emiliano Grodzki and Nicolas Bonta. However, Riot believes the change is still not enough and is only in response to public pressure.

In the open letter, Riot proposed the election of two new independent directors, namely Amy Freedman and John Delaney, to replace two current board members, Andres Finkielsztain and Fanny Philip. According to Riot, the presence of this independent director will improve corporate governance and provide more value for all Bitfarms shareholders.

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In addition, Riot also warned Bitfarms against taking steps that could strengthen the current board's position before the shareholders' meeting on October 29. Riot emphasized that the Bitfarms board of directors should not have made a financing transaction before the meeting was completed, as the move could harm shareholders and provide unfair profits in the board of directors election.

Reporting from Cointelegraph, on August 13, Bitfarms announced the appointment of Ben Gagnon as a new member of the board of directors, following a takeover attempt by Riot Platforms. Nicolas Bonta, who has served as interim president and CEO of Bitfarms since May, has decided to resign from the board following the entry of Gagnon. A Bitfarms spokesperson stated that the appointment of a CEO to the board of directors is a common standard in public companies.

Riot Platforms firmly states that if Bitfarms' current board of directors tries to strengthen its position at the expense of shareholders, then the directors involved will be held personally accountable. With this increasingly heated situation, Bitfarms' shareholders meeting in October is expected to be a crucial moment for the company's future.