Bitfarms and Riot reach settlement, reveal board changes

Bitfarms has reached a settlement agreement with Riot Platforms ahead of the company’s special shareholder meeting in November.

The Canada-based Bitcoin (BTC) mining firm revealed the settlement with its rival in an announcement on Sept. 23. Under the terms of the agreement, Bitfarms has appointed Amy Freedman as a board member, replacing Andrés Finkielsztain, who has stepped down.

In addition to the changes to the board of directors, the agreement includes a standstill through the 2026 Bitfarms Annual Meeting. Meanwhile, Bitfarms has extended certain rights to Riot, allowing it to purchase BITF shares. Riot will have this provision as long as it holds 15% or more of Bitfarms’ outstanding common shares.

Following this development, the special meeting scheduled for Nov. 6, may be delayed. However, according to details in a press release, the anticipated virtual event will not be postponed beyond Nov. 20, 2024.

Riot to support Bitfarms board

Bitfarms and Riot have been engaged in a major acquisition battle since April, when U.S.-based bitcoin mining giant Riot announced a $950 million takeover bid for its Canada-based rival.

While Riot has since increased its stake in Bitfarms, the company has repelled the takeover bid, which it described as undervalued. The dispute has seen Bitfarms adopt a “poison pill” approach and Riot increasing its share purchase in Bitfarms.

In early September, Riot proposed new board members, prompting Bitfarms to postpone the special shareholder meeting.

Commenting on the development, Riot CEO Jason Les said the “agreement represents a significant step” in bringing value to the shareholders of both companies. Les called it a “constructive resolution” and stated that Riot will support Bitfarms’ reconstituted board. Riot is Bitfarms’ largest shareholder.

The shares of both companies opened higher on Monday, Sept. 23.