Bitcoin Miner Bitfarms Appoints New Board Member to Forestall ‘Hostile’ Takeover
Bitcoin mining firm Bitfarms is practically doing all it can to retain control and avoid a takeover by rival Riot Platforms. In its latest move in this regard, the Canadian firm has appointed a new independent board member in a move that many have seen as a defense tactic in the unspoken battle that is currently ongoing between the two firms. Bitfarms Counters Riot Platforms’ Bid for Control Amid Industry Growth Riot Platforms, which already owns a significant 14.9% stake in Bitfarms, announced on June 24th their intention to replace three members of Bitfarms’ board with independent directors. The announcement came after Bitfarms’ board blocked Riot’s attempt to increase ownership beyond 15%. Riot would also later drop all its previous plans to acquire all Bitfarms common shares at US$2.30 per share. The firm, having reached an impasse, cited that the current board is not in anyway forthcoming. Part of the statement at the time reads: “It is clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible.” Meanwhile, Bitfarms itself has now made a countermove. It recently announced the appointment of Fanny Philip as an independent board member. Philip brings valuable experience to the table, serving on the Canadian Blockchain Consortium’s mining committee and holding the presidency of its Québec Chapter. Interestingly, this new appointment puts Bitfarms in an advantageous position of strength, with four out of five board members now independent. Although in contrast, Riot’s proposed replacements – John Delaney, Amy Freedman, and Ralph Goehring – were intended to have no prior connections to either company. The power tussle between Bitfarms and Riot Platforms unfolds against a backdrop of growing investor interest in Bitcoin mining. The increasing adoption of Bitcoin and the rise of artificial intelligence (AI) are fueling demand for the immense computational power required for mining activities. This demand is attracting significant investments, as evidenced by Hut 8, another major Bitcoin miner, securing a $150 million investment from Coatue Management in late June. Billionaire investor Philippe Laffont, owner of Coatue Management, has expressed his belief that Hut 8 is “well-positioned” to capitalize on the growing demand for computing power within the AI and Bitcoin ecosystems. The transaction is expected to be completed before July 11th.
