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14/08/24
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Leadership Shakeup at Bitfarms Amid Acquisition Bid from Riot Platforms
Nicolas Bonta will be departing from the board of Canadian cryptocurrency mining company Bitfarms, following a period of significant leadership changes within the organization. In a recent announcement made on August 13, the firm disclosed that Ben Gagnon, the current CEO, will be joining the board. Simultaneously, Brian Howlett, who has been serving as the lead director, is set to take over the role of independent chairman.
Bonta, who stepped in as interim president and CEO in May and remained until Gagnon’s full appointment in July, has opted to resign from his board position. The reorganization of the leadership team is reportedly not tied to a takeover bid by Riot Platforms, which has been ongoing for several months.
In May, Riot Platforms made a move to acquire Bitfarms with an offer valued at $950 million while progressively increasing its ownership stake in the company. To counter this threat, Bitfarms activated a “poison pill” strategy designed to limit Riot’s holdings to 15%, although this strategy was subsequently blocked by Canadian regulators.
As of July 29, Riot claimed to hold 16.9% of Bitfarms’ common shares, proposing to replace three board members, including Bonta, in an upcoming shareholder meeting scheduled for October 29.
In its second-quarter earnings report for 2024, Bitfarms noted a 22% increase in its stock price, with the company successfully mining 614 Bitcoins valued at approximately $37 million. The organization remains a crucial player in the cryptocurrency sector, navigating ongoing challenges from potential acquisitions and regulatory scrutiny.
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