Bitfarms Reschedules Shareholder Meeting

U.S. publicly traded bitcoin miner Bitfarms has rescheduled its special meeting of shareholders by one week to reevaluate an amended requisition from Riot Platforms.

Originally called in response to a requisition from Riot Platforms (RIOT) on June 24, the meeting date has been moved from October 29 to November 6. On September 3, Riot amended its requisition, raising concerns over Bitfarms’ recent governance changes and the proposed acquisition of Stronghold Digital ahead of the special meeting to vote on reconstituting Bitfarms’ board of directors. Riot has advocated for further changes to the Bitfarms board, emphasizing a need for independent oversight and improved governance practices to enhance shareholder value.

Riot originally sought to acquire Bitfarms for about $950 million in April and has since been acquiring shares to become its largest shareholder, currently owning approximately 19.9% of Bitfarms.

In a press release, Bitfarms stated, “The Bitfarms Board is focused on acting in the best interests of ALL Bitfarms shareholders. On the contrary, it is clear that Riot, as a direct competitor to Bitfarms, is only focused on taking steps to support its shareholders, not Bitfarms or its shareholders.” Bitfarms noted the high costs and distractions from a proxy contest, indicating the Special Committee’s aim to engage constructively with Riot to resolve the Amended Requisition and protect their shareholders’ interests without unnecessary expenses.

The Bitfarms Special Committee has proposed increasing the board size to six by adding one mutually agreed-upon board nominee, alongside a standstill and other customary provisions.

At publication time, Bitfarms’ stock rose 4.7% to $1.88 per share, while Riot’s stock traded around $650 a share.