Bitfarms Fires CEO After $27M Lawsuit Filing

Bitcoin miner Bitfarms fired CEO Geoffrey Morphy following a $27 million lawsuit against the company. Morphy claims breach of contract and wrongful termination.

On May 13th, Bitfarms terminated CEO Geoffrey Morphy after initiating a $27 million lawsuit against the organization.

Morphy, a Bitcoin miner, reportedly filed a multimillion-dollar claim in the Superior Court of Ontario on Friday, alleging that Bitfarms was liable for $27 million in aggravated and punitive damages, breach of contract, and unlawful termination.

The Bitfarms dismiss Morphy Following a $27 Million Lawsuit

Nicolas Bonta, co-founder and chairman of Bitfarms, has been designated interim president and chief executive officer.

As of early Monday afternoon, the bitcoin mining company’s shares were trading the day down 5.9%.

“The organization believes that the allegations lack validity and is resolved to mount a vigorous defense,” Bitfarms stated.

Bitfarms added to the news of Morphy’s unexpected departure on Monday by announcing that its first quarter conference call would be rescheduled for Wednesday at 8 a.m.

The Initiation Of A Legal Conflict Between Bitfarms And Cryptocurrency Geoffrey Morphy?

In March, Bitfarms initially declared Morphy’s departure from the Toronto-based organization, stating that he would do so “upon the conclusion of an executive search” for his successor.

Morphy joined the Bitfarms management team in 2020, shortly after the company was established in 2017, and ascended to CEO by late 2022.

Morphy stated, “Serving Bitfarms, our shareholders, and our employees has been the greatest honor of my professional life.” “I am incredibly pleased with our group’s collective achievements.”

Notwithstanding Bonta’s recent characterization of Morphy as “an integral part of the company’s success,” tensions have emerged between Bitfarms and the now-deposed CEO.

Bitfarms To Announce CEO Replacement In Coming Weeks

Cryptocurrency miners are experiencing adversity at the time of the CEO’s departure, as public mining companies report Bitcoin production declines since the quadrennial halving event in April.

Due to the halving, mining rewards have decreased from 6.25 BTC to 3.125 BTC, causing difficulties for miners.

Markus Thielen, Head Researcher at 10x Research, noted in April 2024 that a summer lull in the cryptocurrency market might lead miners to sell off a sizable portion of their holdings, “potentially $5 billion worth of BTC.”

Thielen stated, “The overhang from this selling could last four to six months, which would explain why Bitcoin may experience a sideways trend over the next few months, as it has done in the months following previous halvings.”

Bitfarms, meanwhile, announced that the search for its next CEO is “approaching completion” and that the new leader will be announced in the coming weeks.