Bitfarms has responded to Riot Platforms following an open letter from Riot criticizing recent changes to Bitfarms’ board of directors.
According to previous reports, Riot claimed the company’s governance was “broken” and that the company was leading in the wrong direction. The company currently holds a 19.9% stake in Bitfarms.
In its response, Bitfarms explained that the upcoming shareholder meeting on October 29, 2024, has nothing to do with corporate governance issues, as Riot had suggested. Instead, Bitfarms argued that Riot Platforms was pushing for changes to benefit its own interests.
The mining company said that the decision to change its board members and management was decisions made independently and not influenced by Riot Platforms
The company defended its actions, stating that the changes are part of a plan to grow its business and strengthen its energy operations, especially in the U.S., which includes its recent purchase of Stronghold, another mining company.
The tension between Bitfarms and Riot Platforms has been escalating since Riot Platforms began pressuring Bitfarms to accept a $950 million takeover bid earlier in 2024
When Bitfarms refused the offer, it introduced a plan to prevent a hostile takeover by Riot. However, a financial regulator in Canada later forced Bitfarms to drop this plan.
In response to this, Riot proposed independent candidates for the board and has continued to increase its ownership stake in Bitfarms.
But Riot remains critical of Bitfarms’ decisions, especially about the acquisition of Stronghold, which it believes may not be in the best interests of its shareholder
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