Riot has issued a call for a special gathering of Bitfarms shareholders to overhaul its board, citing pressing governance concerns, after retracting its previous bid for acquisition.
Riot Platforms, a publicly traded Bitcoin mining company based in the United States, has taken a bold new step in its ongoing campaign to shape the future trajectory of Bitfarms by requesting a special assembly of Bitfarms shareholders.
With a current stake of around 14.9% in Bitfarms, Riot aims to revamp the board of directors by ousting Bitfarms’ interim CEO Nicolas Bonta, director Andrés Finkielsztain, and any recent appointees following Emiliano Grodzki’s departure, as indicated in a statement obtained by crypto.news.
The company, headquartered in Colorado, alleges that Bonta and Finkielsztain are directly responsible for the board’s subpar corporate governance practices and its consistent failure to realize Bitfarms’ full potential.
Furthermore, Riot intends to remove any additional directors appointed by the Bitfarms board after the release of the press statement. Riot Platforms has nominated three candidates, John Delaney, Amy Freedman, and Ralph Goehring, to take the place of Bonta and Finkielsztain, emphasizing the necessity to rectify Bitfarms’ flawed corporate governance.
This latest move by Riot follows months of trying to engage with Bitfarms regarding a possible merger. Riot has now officially retracted its $950 million bid to acquire Bitfarms, asserting that reaching a deal with the current Bitfarms board is unfeasible.
The special assembly will provide shareholders with the opportunity to vote on the proposed changes, which Riot views as crucial due to the mishandling of chief executive succession by the Bitfarms board. Riot emphasizes that meaningful negotiations cannot occur until there is substantial change within the Bitfarms boardroom.
For more information, check out: Bitcoin miner Riot Platforms secures 12% stake in Bitfarms