To make an educated choice, Bitfarms postponed its extraordinary shareholders’ meeting to discuss Riot’s request for board changes.
In response to demands for changes to the business’s board of directors from its largest stakeholder, Riot Platforms, Bitfarms, a bitcoin mining company valued at $57,355, we deferred its October shareholders’ “special meeting” until November 6.
In an open letter to the shareholders dated September 3, Riot described its ongoing efforts to “address Bitfarms’ broken governance,” including the appointment of Ben Gagnon to the Board and as CEO.
However, Gagnon joined the board after Nicolas Bonta and Emiliano Grodzki, two of the company’s co-founders, left. Riot suggested taking more initiative to protect the interests of shareholders:
“The company needs additional truly independent directors with the experience and expertise to ensure that decisions about the Company’s strategy moving forward reflect what is best for all shareholders.”
Bitfarms thwarts Riot Platforms’ plan.
Riot’s desire for a new slate of board members prompted Bitfarms to reschedule the “special meeting of shareholders” from October 29 to November 6.
According to the business, the delay will allow the company and its investors to assess Riot’s demands and long-term effects.
Riot Platforms and Bitfarms, two cryptocurrency mining firms, accuse one another of arranging a personal agenda while maintaining that they are acting in the best interests of all shareholders. The special committee presented Riot with a settlement proposal in response to its requests for more independent directors:
“The addition of one mutually agreed upon Board nominee resulting in an increase of the size of the Board to six, and standstill and other customary provisions.”
At the company’s November special meeting, shareholders can cast their votes and voice their opinions over Riot-Bitfarms’ “proxy contest.”
The increasing impact of Riot Platforms
Riot Platforms increased its stake to 18.9% in August by investing an additional $2.28 million. This purchase was equivalent to buying one million ordinary Bitfarms shares on the open market.
The transaction increased Riot’s total Bitfarms holdings from 84.3 million to 85.3 million shares.
Riot had stated then that it intended to keep examining its investment and think about taking other steps, such as changing its stance or suggesting more board composition changes.