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Riot Platforms, the largest shareholder in Bitfarms, has called for additional changes to the cryptocurrency mining company’s board of directors in an open letter addressed to Bitfarms’ shareholders. The call for reform comes in anticipation of a pivotal shareholders meeting scheduled for October 29.
Riot Platforms holds a 19.9% stake in Bitfarms, a company based primarily in Canada and focused on {Bitcoin} (BTC) mining. Recent developments at Bitfarms have included the resignation of co-founders Emiliano Grodzki and Nicolas Bonta. While these departures mark a significant shift, Riot argues that the changes fall short of addressing broader governance concerns and reflect a reactionary rather than proactive stance.
In its letter, Riot Platforms proposes the appointment of two independent directors, Amy Freedman and John Delaney, to enhance the board's oversight and effectiveness. Riot advocates for these appointments as a means to improve governance and shareholder value. The proposed directors are suggested to replace current board members Andres Finkielsztain and Fanny Philip.
Riot Platforms has also issued a cautionary note to Bitfarms, urging the company not to undertake any actions that might entrench the existing board before the upcoming meeting. Riot emphasizes the importance of allowing shareholders a fair opportunity to voice their opinions and participate in the director election process. The letter warns that any attempts to solidify the current board’s position at the expense of shareholders could lead to personal accountability for the incumbent directors.
The recent changes at Bitfarms include the appointment of CEO Ben Gagnon to the board on August 13. This move came amid Riot Platforms’ push for a takeover. Bonta, who had been serving as interim president and CEO, stepped down from the board following Gagnon’s entry. A Bitfarms spokesperson indicated that such appointments are standard practice among public companies.
As the October 29 meeting approaches, the dynamics between Riot Platforms and Bitfarms are likely to be a focal point for shareholders and industry observers.
