Riot Platforms, the largest shareholder of Bitfarms, has called on shareholders to support changes to the board of directors at the special meeting on October 29. Riot Platforms claims that such steps are necessary to improve the company's governance and increase shareholder value.
Riot Platforms' Appeal
On September 3, Riot Platforms, which owns a 19.9% stake in Bitfarms, expressed concerns over the company's governance practices, stating the need for fresh perspectives to enhance shareholder value.
Criticism of Current Practices
Riot Platforms criticized Bitfarms' tactics to entrench its current board, including the recent acquisition of Stronghold Digital Mining Inc for $175 million. Riot suggests that the agreement benefits only the legacy directors.
Proposed Changes and Implications
While Bitfarms has already made changes to its board, Riot Platforms considers them insufficient. Riot proposes replacing two current board members with Amy Freedman and John Delaney and warns the company against actions that could negatively impact all shareholders.
Riot Platforms continues to advocate for substantial changes in Bitfarms' governance to increase the company's value for all shareholders. The proposed solutions are expected to be discussed at the special meeting on October 29.
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