The disagreement originates from Riot’s unsolicited April offer to purchase Bitfarms for around $950 million. Bitfarms rejected the offer, claiming it vastly underestimated the company’s worth, and accepted a poison pill arrangement to thwart any attempts at a hostile acquisition.
Riot Platforms (RIOT.O) called Bitfarms’ decision to use a poison pill to prevent the bitcoin miner from buying it “shareholder unfriendly” and pointed out the absence of strong corporate governance guidelines. Riot announced on Wednesday that it had secretly pushed Bitfarms to remove Nicolas Bonta, the company’s chairman and acting CEO, and appoint at least two new independent directors to the board. The disagreement originates from Riot’s unsolicited April offer to purchase Bitfarms for around $950 million. Bitfarms rejected the offer, claiming it vastly underestimated the company’s worth, and accepted a poison pill arrangement to thwart any attempts at a hostile acquisition.
Riot stated on Wednesday that the 15% trigger “is in direct conflict with established legal and governance standards.” “We will continue to push to address the serious corporate governance issues at Bitfarms and ensure that shareholders have a say on the company’s path forward,” Jason Les, CEO of Riot, said.
It is evident that Riot’s interests do not coincide with those of its shareholders, Bitfarms stated late on Wednesday. In an attempt to forward its “low-ball bid and disrupt” the strategic alternatives assessment process, Riot is “attacking” its board and corporate governance, according to a statement from Bitfarms. Riot also revealed in a regulatory filing that it increased its ownership of Bitfarms from 12% to 13.1% earlier this month. LSEG data indicates that the corporation is Bitfarm’s largest stakeholder. Riot and Bitfarm’s shares have plummeted by 35% and 19%, respectively, thus far this year, despite a surge of hope in the cryptocurrency space following the approval of exchange-traded funds linked to the spot price of bitcoin.
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