Bitfarms Ltd. and Riot Platforms Inc. have reached a settlement agreement ahead of Bitfarms’ special shareholder meeting, as announced in a press release on Sept. 23. The resolution comes after a period of tension between the two Bitcoin miners that began with Riot’s hostile takeover bid.
The settlement agreement entails Riot withdrawing its previous requisition and supporting the expansion of Bitfarms’ Board of Directors. Additionally, Riot will adhere to a standstill agreement until 2026. As part of the agreement, Andrés Finkielsztain has stepped down from Bitfarms’ board, and Amy Freedman has been appointed as a new member. Freedman will also join the Governance, Nominating, and Compensation Committees. Riot has agreed to vote in favor of expanding the board from five to six members at the special meeting, where shareholders will also elect an independent director and ratify Bitfarms’ shareholder rights plan.
The collaboration between the two companies is evident in the agreement, with Riot CEO Jason Les emphasizing that the settlement is a significant step towards enhancing shareholder value creation. The agreement will be filed with the US Securities and Exchange Commission and posted on SEDAR.
The settlement brings an end to the dispute that arose between Bitfarms and Riot, which originated from Riot’s efforts to influence Bitfarms’ Strategic Alternatives Review Process and its takeover attempt. Riot had criticized Bitfarms’ corporate governance and made a non-binding offer to acquire the company. Bitfarms resisted, accusing Riot of opportunism and trying to acquire the company at a discounted rate. In response, Bitfarms implemented a Shareholder Rights Plan, also known as a “poison pill,” in June to safeguard its strategic review and prevent Riot from exerting undue influence.
Riot’s aggressive tactics reflect its ambition to expand its presence in the competitive Bitcoin mining industry, while Bitfarms has remained focused on protecting its shareholders and pursuing long-term growth through the review process. The settlement signifies a step towards resolving tensions as both companies strive to maximize shareholder value.
This article was featured in the categories of Featured and Mining to highlight the importance of the settlement between Bitfarms and Riot Platforms Inc.