The battle for control of Bitcoin mining company Bitfarms is heating up, with both sides of the matter upping their strategies. The corporate dispute follows the departure of former Bitfarms CEO Geoffrey Morphy, who sued the company for breach of contract.
Bitfarms Appoints New Leader, Riot Launches Campaign for Board Restructuring
On July 8th, Bitfarms announced that it has changed its leadership after appointing Ben Gagnon as its new CEO. Gagnon, who served as the company’s chief mining officer since 2019, brings immense industry knowledge and expertise to the role.
Meanwhile, as if to tackle Bitfarms’ new appointment, Riot Platforms also launched a dedicated website calling for a special shareholder meeting. The goal, however, does not elude keen observers of the unfolding events between the two parties. From all indications, the meeting aims to shift the odds in the favor of Riot by altering the Bitfarms’ board composition. That is considering that Riot has already nominated three candidates for election, in hopes of replacing executives they believe are responsible for alleged governance issues at Bitfarms.
It is worth noting that this public campaign follows a series of events that began in late May. Riot initially proposed acquiring Bitfarms at a premium that exceeds its current price. However, the move was immediately thwarted by Bitfarms’ board.
Not ready to give up, Riot increased its ownership stake in Bitfarms to 14.9%. In response, Bitfarms quickly set up a “poison pill” defense, making large-scale acquisitions more difficult for Riot. As UEEx reported earlier, the firm’s defense strategy was appointing a new board member.
Expectations amid Fluctuating Market Dynamics
Both firms are publicly traded companies on the Nasdaq. At the time of writing, Bitfarms’ stock price ($2.68) has seen a slight increase on the day and a 16.5% rise over the past month. Conversely, Riot’s stock ($9.43) has dipped on the day and is down nearly 5% over the last month.
As the legal battle with Morphy unfolds and the fight for board control intensifies, the coming weeks will be very important for both companies. That is because the developments are poised to impact the companies’ stock prices and overall growth trajectory.
