“Bitfarms Needs to Halt its Defensive Tactics,” Says Riot Platform in Open Letter

cryptonews.com:

Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

Riot Platforms, Inc., the largest shareholder of Bitfarms Ltd., issued an open letter today urging Bitfarms to cease what it describes as defensive tactics ahead of a crucial shareholder meeting scheduled for October 29.

Riot, which owns approximately 19.9% of Bitfarms, criticized the recent actions by Bitfarms’ board, including board changes and the proposed acquisition of Stronghold Digital Mining, Inc.

Riot argues that these moves are insufficient and reactive, calling for further board changes to enhance shareholder value.

Riot Issues Open Letter to Fellow Bitfarms Shareholders Ahead of Upcoming Special Meeting.

For more information, please visit: https://t.co/aWNMsP1I5y.

Since Riot began its campaign, significant changes have already occurred, including the resignation of Emiliano Grodzki and Nicolas Bonta, two of Bitfarms’ three co-founders, and the appointment of Fanny Philip and Ben Gagnon to the board and executive leadership roles, respectively.

However, Riot contends these changes are merely reactive responses to its pressure and fail to address the deeper governance issues at Bitfarms.

Riot outlined several specific grievances, accusing Bitfarms of prioritizing board entrenchment over shareholder engagement.

One major point of contention is Bitfarms’ failed attempt to implement a shareholder rights plan, known as the “Poison Pill,” which would have set a 15% threshold, counter to legal and governance standards.

This plan was invalidated by the Ontario Capital Markets Tribunal following Riot’s intervention, a move that Riot