July 24, 2024
Latest Cryptocurrency News

Riot Platforms Plans Board Overhaul in Bitfarms Takeover Bid

Riot Platforms, embroiled in a takeover bid with Canadian mining firm Bitfarms, announced plans to replace three members of Bitfarms’ board of directors. The decision follows Bitfarms’ implementation of a shareholder rights plan, which limits Riot’s stake in the company to 15%. Riot currently holds approximately 14.9% of Bitfarms’ shares.

In response to Bitfarms’ defensive strategy, Riot opted to change tactics, aiming to revamp Bitfarms’ board composition rather than increase its shareholding. The proposed replacements include John Delaney, Amy Freedman, and Ralph Goehring, individuals described as completely independent of both Riot and Bitfarms.

Bitfarms’ Response and Market Reaction

Bitfarms’ stock price has seen significant fluctuations amidst these developments. It surged more than 36% over the past month due to the takeover interest but declining approximately 6% in the last 24 hours. Bitfarms criticized its board for failing to engage constructively with Riot regarding the proposed acquisition. As a result, it further complicated matters after former CEO Geoffrey Morphy’s resignation and legal actions.

Additionally, Nicolas Bonta, Bitfarms’ interim CEO, could potentially lose his position as one of the three targeted board members if Riot’s efforts to sway shareholders succeed. Riot emphasized its readiness to negotiate a merger with Bitfarms under a new board, having withdrawn its previous proposal to acquire all Bitfarms shares at $2.30 each.

The Road Ahead

The move to overhaul Bitfarms’ board marks the latest twist in Riot’s aggressive approach towards the mining company. In May, Riot made a $950 million bid for Bitfarms and began acquiring shares until Bitfarms enacted its defensive measure to prevent a complete takeover. The outcome now hinges on shareholder response to Riot’s proposal to reshape Bitfarms’ governance structure.

The ongoing saga underscores the tensions and strategic maneuvers typical in corporate takeover battles, impacting stakeholders and investors alike. As the situation evolves, market observers keenly await further developments in this high-stakes corporate drama.

Image by pressfoto on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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