Bitfarms Appoints New CEO as Corporate Battle Continues

The ongoing corporate battle at Bitfarms remains heated as the Bitcoin mining company appoints a new CEO, Ben Gagnon.

Bitfarms, a Bitcoin miner, has appointed new leadership, and Riot Platforms has launched a new campaign website in response to the ongoing corporate dispute between the two companies.

Bitfarms announced the appointment of Ben Gagnon as its new CEO on July 8. Gagnon has been with the organization since 2019 and was previously the chief mining officer.

Riot launched a new website on the same day, requesting a special meeting of Bitfarms shareholders. Riot intends to reconstitute Bitfarms’ board of directors during this meeting, which has not yet been scheduled.

Riot previously announced the nomination of three candidates for election to Bitfmars’ board: John Delaney, Amy Freedman, and Ralph Goehring. This announcement was made on June 24. Riot also sought the removal or replacement of Nicolas Bonta and Andrés Finkielsztain. Riot asserts that both executives “bear direct responsibility” for the purported governance issues of Bitfmars.

Bitfarms announced on June 27 that Fanny Philip had been appointed an independent board member in response to a special meeting request.

Tension within the organization manifests itself

The most recent initiative in the ongoing dispute between the two companies is Riot’s public campaign.

Riot proposed the acquisition of Bitfarms in late May at a significant premium to its current market price. Bitfarms’ board declined to approve the proposal.

Subsequently, Riot acquired additional shares of Bitfarms. The company had increased its stake to 14.9% by June. In response, Bitfarms disclosed a “poison pill” defense strategy that limits Riot’s takeover but does not entirely avoid it.

According to the proposal, shareholders with a 15% stake in Bitfarms’ shares by Sept. 20 could increase their stake to 20% without board approval.

Behind the struggle for control over the company is the departure of former Bitfarms CEO Geoffrey Morphy, who stepped down in May after filing a lawsuit against the firm seeking $27 million in compensation for breach of contract, wrongful dismissal, and damages.

Cointelegraph reached out to Bitfarms but has yet to receive an immediate response.

The companies are both publicly listed on the Nasdaq. Bitfarms (BITF) shares are trading at $2.68 when writing, gaining 0.4% in the day and increasing 16.5% over the past 30 days. Riot (RIOT) stocks traded at $9.43, down 2.2% on the day and declining 4.8% since last month.