Riot Platforms, holding a significant 19.9% share in Bitfarms, has made a public demand for additional changes to the cryptocurrency firm’s board.
Riot Platforms has issued an open letter to Bitfarms’ shareholders, advocating for the election of two new independent directors at the forthcoming shareholders meeting scheduled for October 29.
This critical meeting comes in the wake of recent changes to the board, notably the resignations of Bitfarms co-founders Emiliano Grodzki and Nicolas Bonta. Despite these changes, Riot Platforms views them as insufficient and purely reactive.Â
The proposed independent directors, Amy Freedman and John Delaney, aim to replace current members Andres Finkielsztain and Fanny Philip.
In its communication, Riot Platforms expressed concern regarding any potential steps by Bitfarms that could entrench the current board’s position before the critical October meeting.
Riot emphasizes the importance of shareholder input and opposes any board actions that might negatively impact investor interests or skew the fairness of the upcoming director elections.
Additionally, Riot has cautioned Bitfarms against engaging in any financing transactions that could dilute shareholder value unnecessarily, citing the availability of more advantageous financing options.
Such actions, Riot warns, could lead to personal accountability for the incumbent directors if they proceed in a manner detrimental to shareholder interests.
The recent appointment of CEO Ben Gagnon to the board, amid attempts by Riot to alter the company’s leadership, marks another significant development. This move, according to a Bitfarms spokesperson, aligns with standard practices for public companies.
However, this transition also raises questions about the balance of power and the future direction of Bitfarms under its new leadership and potentially revised board structure.
Also Read: Riot Platforms Reports $84.4 Million Net Loss for Q2 2024
