TL;DR
- Board Changes: Andrés Finkielsztain steps down from Bitfarms’ Board; Amy Freedman joins, bringing extensive experience in corporate governance.
- Standstill Agreement: Riot Platforms withdraws its requisition and agrees to standstill provisions through Bitfarms’ 2026 Annual Meeting, promoting stability and collaboration.
- Strategic Growth: Both companies emphasize growth and diversification beyond Bitcoin mining, exploring new areas like energy generation and high-value revenue streams.
Bitfarms Ltd. (NASDAQ/TSX: BITF) and Riot Platforms Inc. (NASDAQ: RIOT) have announced a settlement agreement ahead of Bitfarms’ Special Meeting of Shareholders, scheduled for November 6, 2024. This agreement marks a pivotal moment for both companies as they navigate the evolving landscape of Bitcoin mining and digital infrastructure.
As part of the agreement, Andrés Finkielsztain has stepped down from Bitfarms’ Board of Directors. Amy Freedman has been appointed to the Board, bringing over 25 years of experience in corporate governance and public capital markets. Freedman will also serve on the Governance and Nominating Committee and Compensation Committee of the Board.
Standstill Agreement and Future Plans
Riot Platforms has agreed to withdraw its June 24, 2024 requisition and accept customary standstill provisions through Bitfarms’ 2026 Annual Meeting. This move is expected to foster stability and collaboration between the two companies.
At the upcoming Special Meeting, shareholders will vote on expanding the Board from five to six members and electing an independent director nominated by the Board.
Brian Howlett, Independent Chairman of Bitfarms’ Board, expressed his gratitude to Andrés Finkielsztain for his contributions over the past four years. He also highlighted the importance of board refreshments and the addition of qualified candidates like Amy Freedman to enhance shareholder value.
Strategic Growth and Diversification
Bitfarms’ CEO, Ben Gagnon, emphasized the company’s commitment to executing its growth strategy and diversifying beyond Bitcoin mining. The company aims to explore new areas such as energy generation, energy trading, heat recycling, and high-value revenue streams like HPC/AI.
Riot Platforms’ CEO, Jason Les, echoed these sentiments, stating that the agreement represents a significant step towards advancing shareholder value creation. As Bitfarms’ largest shareholder, Riot Platforms looks forward to supporting the reconstituted Board and continued engagement with Bitfarms’ management.
This settlement agreement is seen as a positive development for both companies, setting the stage for future growth and collaboration in the rapidly evolving Bitcoin mining industry.
