Bitfarms and Riot Platforms Reach Settlement Agreement
Bitfarms and Riot Platforms made headlines on September 23, 2024, as they announced a significant settlement agreement that involves new board appointments and a standstill arrangement extending until 2026.
According to information from a press release obtained by Cryptonews, this agreement will result in Andrés Finkielsztain stepping down from Bitfarms’ board, while Amy Freedman will join as a new director.
Overview of the Settlement Agreement
The core of the agreement includes Riot withdrawing its previous requisition and refraining from certain actions until the 2026 Bitfarms Annual Meeting, with specific outlined exceptions. The purpose of this standstill agreement is to ensure stability within Bitfarms' governance structure over the next two years.
Additionally, Bitfarms plans to propose expanding its board from five to six members during a special meeting, where shareholders will have the opportunity to vote on the new independent director nominee.
Independent Chairman Brian Howlett emphasized the importance of board refreshment and diversity, stating, "We are always open to adding qualified candidates with valuable insights and perspectives to strengthen our Board."
Future Plans and Upcoming Meeting
Looking ahead, the agreement grants Riot certain rights to acquire additional shares in Bitfarms, given that it maintains a holding of 15% or more of the company's outstanding common shares.
Bitfarms has outlined a shareholder rights plan that will be up for voting at the upcoming special meeting. This plan aims to establish a structured approach for any potential changes in the ownership of Bitfarms shares.
CEO Ben Gagnon expressed the company's commitment to diversifying its business beyond bitcoin mining into innovative areas like energy generation, energy trading, heat recycling, and other high-value revenue streams such as HPC/AI.
The special meeting, initially planned for November 6, might be rescheduled to accommodate these new proposals. However, Bitfarms reassures shareholders that the meeting will not be postponed beyond November 20, with updates provided as they become available.
