May 23, 2024
Latest Cryptocurrency News

Bitfarms Fires CEO Geoffrey Morphy Amidst Lawsuit

Toronto-based Bitcoin mining firm Bitfarms has terminated CEO Geoffrey Morphy’s employment with immediate effect. The decision comes in response to Morphy’s recent lawsuit against the company, claiming $27 million in damages for breach of contract. Morphy, who previously served as President and COO, was promoted to CEO in December 2022.

Source: X

Claims of Breach of Contract Lead to Termination

The rift between Bitfarms and Geoffrey Morphy emerged when the former CEO filed a Statement of Claim in the Superior Court of Ontario, alleging breach of contract, wrongful dismissal, and seeking damages totaling $27 million.

Bitfarms swiftly responded, asserting that the claims lacked merit and affirming its intention to vigorously defend itself. Notably, Morphy has been relieved of his duties as a company director.

New Leadership Takes Charge Amidst Turmoil

With the departure of Morphy, Nicolas Bonta, Chairman and co-founder of Bitfarms, steps in as interim President and CEO. Bonta’s appointment aims to provide stability as the company navigates through the aftermath of the lawsuit. Furthermore, Bitfarms anticipates completing its executive search in the coming weeks to secure a permanent successor.

Q1 Conference Call Rescheduled

In light of recent developments, Bitfarms has postponed its first-quarter conference call, initially slated for today, to May 15 at 8 a.m. ET. This delay reflects the company’s need to address the leadership transition and the legal implications arising from Morphy’s lawsuit.

As news of Morphy’s dismissal spreads, Bitfarms’ stock faces turbulence in the market. Trading at $1.55, the firm’s share price has plummeted by over 10%, exacerbating losses exceeding 50% year-to-date. The future trajectory of Bitfarms remains uncertain amidst the ongoing legal battle and the search for new leadership.

Source: TradingView.

Image by rorozoa on Freepik

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