Bitcoin Mining Settlement Agreement Reached
Bitfarms has finalized a settlement agreement with Riot Platforms ahead of their upcoming special shareholder meeting in November. The Canada-based Bitcoin (BTC) mining firm disclosed the details of the settlement in an announcement on Sept. 23. As part of the agreement, Amy Freedman has been appointed as a new board member, replacing Andrés Finkielsztain who has stepped down.
Changes in Bitfarms Board of Directors
Aside from the recent board member appointment, the settlement agreement also includes a standstill provision through the 2026 Bitfarms Annual Meeting. Additionally, Bitfarms has granted Riot the right to purchase BITF shares, as long as Riot holds 15% or more of Bitfarms’ outstanding common shares. The special meeting set for Nov. 6 may face delay as a result of these developments, with the virtual event expected to take place before Nov. 20, 2024.
Riot’s Support for Bitfarms
The acquisition battle between Bitfarms and Riot has been ongoing since April when Riot proposed a $950 million takeover bid for its Canada-based rival. Despite increasing its stake in Bitfarms, Riot’s bid was rejected by the company for being undervalued. The conflict led Bitfarms to implement a “poison pill” strategy, while Riot continued to buy more shares in Bitfarms. Recently, Riot suggested new board members, prompting Bitfarms to postpone the special shareholder meeting. Riot CEO Jason Les expressed optimism about the settlement agreement, stating that it will bring value to shareholders of both companies. Les confirmed Riot’s support for Bitfarms’ reconstituted board, as Riot remains the largest shareholder in Bitfarms. Both companies’ shares experienced an increase in value following the announcement of the agreement.
