Bitcoin mining company Bitfarms has postponed its upcoming shareholders’ meeting following a push from its largest shareholder, Riot Platforms, for changes in its leadership. Initially scheduled for October, the 'special meeting' will now take place on November 6, allowing the company and its shareholders more time to evaluate Riot’s proposals.
Meeting's Agenda
Riot Platforms, holding an 18.9% stake in Bitfarms, has been advocating for major changes to the company’s board of directors. On September 3, Riot issued an open letter to Bitfarms shareholders, expressing concerns over what it described as 'broken governance' within the company. Riot has proposed appointing Ben Gagnon as the CEO and introducing more independent directors to ensure the company acts in the best interests of all shareholders. In response, Bitfarms clarified that the upcoming meeting is not about corporate governance, as Riot suggests. Instead, they argue that Riot is attempting to take over the company at a discounted price for its own shareholders’ benefit. Bitfarms also countered Riot’s claims by offering a settlement proposal, which included adding one mutually agreed-upon board nominee and increasing the board’s size to six members.
Ongoing Tension
The tensions between the two companies began to escalate after Riot Platforms increased its ownership in Bitfarms to 18.9% in August, acquiring an additional 1 million common shares. This move followed an earlier investment, bringing Riot’s total holdings in Bitfarms to 85.3 million shares. Riot has made it clear that it will continue reviewing its investment in the company and may push for further changes in leadership. This added an extra pressure on Bitfarms after a Canadian tribunal issued a cease trade order in July, putting an end to Bitfarms’ defensive 'poison pill' strategy.
Bitfarms' Production Success
Meanwhile, Bitfarms has been performing well despite the corporate dispute. In June, the company reported a 21% increase in Bitcoin production, mining 189 Bitcoins that month and selling 134 for $8.8 million.
The November meeting will give shareholders the opportunity to voice their opinions on the ongoing proxy battle between the two companies. Both Riot and Bitfarms have accused each other of pursuing personal agendas while maintaining that they are acting in the best interests of the company’s shareholders.
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