Bitfarms appoints new CEO as Riot intensifies takeover bid

07/09/2024 00:05
Bitfarms appoints new CEO as Riot intensifies takeover bid

Bitcoin miner Riot Platforms launches campaign to overhaul Bitfarms' governance structure.

Bitfarms appoints new CEO as Riot intensifies takeover bid Bitfarms appoints new CEO as Riot intensifies takeover bid 11 seconds ago · 2 min read

Riot Platforms has launched a dedicated website to rally Bitfarms shareholders against the board.

2 min read

Updated: Jul. 8, 2024 at 6:05 pm UTC

Bitfarms appoints new CEO as Riot intensifies takeover bid

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Bitcoin miner Riot Platforms’ effort to take over rival Bitfarms has taken a new turn with recent developments in both companies.

Dedicated website

On July 8, Riot launched a dedicated website, “ABetterBitfarms,” to educate Bitfarms shareholders on why the rival firm’s board should be reconstituted.

CryptoSlate’s visit to the new website was greeted by a bold message stating:

“It’s Time To Fix Bitfarms’ Broken Corporate Governance. New, independent perspectives are needed on the Bitfarms Board to evaluate the best path forward for shareholders.”

The site urges Bitfarms stakeholders to anonymously share their views on the company’s operations and encourages shareholders to register and follow the website.

The move adds to the ongoing conflict between the two BTC miners. Riot first tried to acquire Bitfarms in April for about $950 million, but Bitfarms rejected the offer because it undervalued the company.

In June, Riot called for a special meeting of Bitfarms shareholders to restructure Bitfarms’ board. The miner wants to remove Chairman and Interim CEO Nicolas Bonta and director Andrés Finkielsztain, claiming the current board prioritizes the directors’ interests over those of shareholders.

Meanwhile, Riot has steadily purchased Bitfarms stock, becoming its largest shareholder with a 14.9% stake.

New CEO

On the other hand, Bitfarms continues to resist Riot’s takeover and has appointed Ben Gagnon, the former Chief Mining Officer, as its Chief Executive Officer.

Gagnon started at the firm as its Director of Business Development in 2019 and oversaw its mining strategy and operations, including growth strategies, mining economics, miner portfolio management, and evaluation and integration of new technologies.

Gagnon stated that the firm would focus on HPC (high-performance computing) for AI (artificial intelligence) opportunities under his stewardship and prepare strategies for the 2028 halving event.

Meanwhile, Gagnon is the second major executive hire for the firm in the last two weeks. Bitfarms also appointed Fanny Philip as an independent board member, increasing the board to five directors, four of whom are independent.

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