Bitfarms Responds to Riot Platforms’ Claims About Special Meeting
Bitfarms, a prominent Bitcoin mining company, has recently addressed the claims and actions made by Riot Platforms, its largest shareholder. The ongoing conflict between the two entities has escalated, with accusations of acquisition attempts and misleading statements.
In response to Riot’s allegations, Bitfarms emphasized that the upcoming special shareholder meeting scheduled for October 29 is not related to corporate governance as claimed by Riot. Instead, Bitfarms believes that Riot is trying to acquire the company at a discounted price to benefit its own shareholders rather than Bitfarms’ shareholders.
Allegations and Counterclaims
- Bitfarms accuses Riot of attempting to acquire the company at a reduced price.
- Riot has refused to engage constructively in discussions and declined to offer a revised proposal.
- Bitfarms defends recent board and leadership changes as independent decisions.
- Explanation of the proposed acquisition of Stronghold to diversify power access.
The Conflict Unfolds
The conflict between Bitfarms and Riot Platforms began in May 2024 when Riot increased pressure on Bitfarms to accept a $950 million takeover bid. In response, Bitfarms implemented a shareholder rights plan to prevent the hostile takeover, which was later invalidated by Canadian regulators.
Following the invalidation of the plan, Riot increased its stake in Bitfarms to 19.9% and nominated three independent candidates for Bitfarms’ board. Bitfarms remains cautious about Riot’s intentions and is reviewing the amended proposal without requiring immediate action from shareholders.
Current Strategic Focus
- Bitfarms emphasizes commitment to its existing strategic plan.
- The company believes its current team has the necessary skills and experience.
- Operations span across 12 Bitcoin data centers in four countries.
- Emphasis on environmentally friendly power sources and long-term contracts.
Hot Take: The Future of Bitfarms and Riot Platforms
As the conflict between Bitfarms and Riot Platforms continues, the upcoming special shareholder meeting on October 29 will be crucial in determining the future direction of both companies. Stay tuned for further updates on how this dispute unfolds and impacts the cryptocurrency mining industry.
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