Bitcoin miner Bitfarms will hold a shareholder vote in October regarding Riot Platform’s takeover bid, according to a July 12 statement.
The miner stated that its shareholders of record as of Sept. 26, 2024, will be able to vote at the special meeting it convened at Riot’s behest.
Takeover bid
This marks the latest development in the protracted takeover battle between Riot and Bitfarms.
In April, Riot attempted to acquire Bitfarms for approximately $950 million. However, Bitfarms rejected the unsolicited offer and said it significantly undervalued the firm.
Since then, Riot has stepped up efforts, creating a dedicated website to educate Bitfarms’ shareholders and calling for a special meeting that will restructure the rival miner board by removing Chairman Nicolas Bonta and Director Andrés Finkielsztain.
Riot claimed these moves are necessary as the current board prioritizes the directors’ interests over those of shareholders.
Bitfarms, however, argued that Riot’s meeting request is part of its efforts to “opportunistically acquire” it after its botched $950 million offering in April. The miner stated that Riot’s request would disrupt its strategic alternatives review process and evaluation opportunities to maximize shareholder value.
Furthermore, Bitfarms pointed out that Riot had requested the shareholding record date be set after a hearing with the Ontario Securities Commission on July 22 and 23. It added that Riot made this request to nullify its shareholder rights plan and increase its holdings in the rival company. Riot is Bitfarms’ largest shareholder, holding a 14.9% stake in the miner.
Despite this, Bitfarms proceeded with its decision after a special committee of independent board directors, with financial and legal advisors, decided on the meeting and record date.
Moreover, Bitfarms urged Riot to engage it constructively to avoid depleting its limited cash resources and protect stakeholders’ interests.
Bitfarms recently appointed Ben Gagnon as CEO and Fanny Philip as an independent board member.