Bitcoin mining firms Riot Platforms and Bitfarms have recently come to a settlement agreement, effectively putting an end to Riot’s acquisition bid for the crypto mining company. This news was announced in a statement released on September 23.
Under the terms of the settlement, Riot Platforms has withdrawn its request for a special shareholder meeting of Bitfarms. The agreement, which was signed on September 23, 2024, maintains Riot’s 19.9% ownership stake in Bitfarms, totaling 90,110,912 common shares.
As part of the agreement, Andrés Finkielsztain has resigned from Bitfarms’ Board of Directors. In his place, Amy Freedman has been appointed to the board and various committees. Amy brings with her 25 years of experience in corporate governance and public capital markets, currently serving as an advisor to Ewing Morris and Co. Investment Partners. Her impressive track record includes roles at Stifel Financial Corp. and Morgan Stanley.
Freedman’s appointment includes serving on the Governance and Nominating Committee, the Compensation Committee, and any current or future “special committees” of independent directors, provided she meets the independence requirements.
Riot Platforms has expressed its intention to continue evaluating its investment in Bitfarms and may make adjustments to its position based on market conditions and other investment opportunities.
The resolution of this settlement marks the end of a hostile takeover saga between Riot Platforms and Bitfarms. Riot had been increasing its stake in Bitfarms throughout 2024, culminating in a $950 million acquisition offer in April.
The relationship between the two companies led to a series of maneuvers, with Bitfarms attempting to thwart Riot’s efforts by selling discounted shares to shareholders to increase their stake in the company. In response, Riot nominated three independent candidates for Bitfarms’ board of directors.
This back-and-forth ultimately led to Bitfarms calling a special shareholder meeting to address Riot’s acquisition attempts. The settlement agreement reached on September 23 now brings an end to the hostile takeover efforts by Riot.
Overall, this resolution marks a significant development in the relationship between Riot Platforms and Bitfarms, shaping the future trajectory of both companies in the crypto mining industry.