1. Riot’s stake and actions
2. Warning to Bitfarms
3. Bitfarm board shakeup

Riot Platforms, the largest shareholder of Bitfarms Ltd., has issued an open letter to Bitfarms’ shareholders, calling for additional changes to the company’s board of directors. The upcoming meeting of shareholders is scheduled for Oct. 29. During this meeting, Riot will push for reforms to improve governance and value for all shareholders.

Riot’s stake and actions

Riot holds a 19.9% stake in the BTC mining-focused firm and has acknowledged recent changes to the board, including the resignation of co-founders Emiliano Grodzki and Nicolas Bonta. In the open letter, Riot argues that these changes are insufficient and reactionary to public pressure and proposes the election of two independent directors, Amy Freedman and John Delaney. The two new independent directors proposed would replace Bitfarm’s board members, Andres Finkielsztain and Fanny Philip.

Warning to Bitfarms

In its letter, Riot also warns Bitfarms against taking further actions that could entrench the existing board before the Oct. 29 meeting. Riot stated that it “sincerely” hopes that Bitfarms will ensure shareholders “have their say” and not “seek to take any steps” that could “adversely affect investors” or gain “unfair advantage in the director election. Riot warned that if the Bitfarms Board insisted on taking ‘any such action to further entrench itself at the expense of shareholders,’ incumbent directors would be held ‘personally accountable.’

Bitfarm board shakeup

On Aug. 13, Bitfarms announced the appointment of CEO Ben Gagnon as a new board member amid Riot Platforms’ attempted takeover. Bonta, who worked as Bitfarms’ interim president and CEO, stepped into the role in May and ‘decided to step down’ from the board upon Gagnon’s entry. A Bitfarms spokesperson told Cointelegraph at the time that the appointment of a CEO to a board was ‘standard across public companies.’

The situation surrounding Bitfarms’ board continues to develop, and the upcoming shareholder meeting could be a pivotal moment for the company. Riot Platforms is pressing for changes to improve governance and increase value for all shareholders.