Bitcoin Miners Riot and Bitfarms Reach Settlement Ahead of Shareholder Meeting

Riot Platforms and Bitfarms have resolved their dispute following a settlement agreement detailed in a joint announcement on Sept. 23, 2024. The agreement, which was filed with the U.S. Securities and Exchange Commission (SEC), comes ahead of Bitfarms’ special shareholder meeting on Nov. 6, 2024.

Riot Withdraws Bid to Restructure Bitfarms’ Board in Settlement Deal

Under the terms of the settlement, Riot agreed to withdraw its requisition to replace certain directors on Bitfarms’ board. In exchange, Bitfarms appointed Amy Freedman to its board and assigned her to key committees, including the Governance and Nominating Committee, the Compensation Committee, and any special committee of independent directors.

Freedman’s appointment follows the resignation of Andrés Finkielsztain from the board, which was accepted by Bitfarms as part of the settlement. Riot, as a significant shareholder, is entitled to nominate a qualified individual to the board, provided the nominee meets certain criteria outlined in the agreement.

The settlement marks the resolution of a contentious bid by Riot to influence Bitfarms’ governance, which had triggered the scheduling of a special shareholder meeting. As part of the agreement, Riot has agreed to support the resolutions that will be put forward during the Nov. 6 meeting, including the expansion of Bitfarms’ board from five to six members.

Both parties described the settlement as a constructive resolution in the best interest of shareholders, with Riot maintaining its position as Bitfarms’ largest shareholder. Over the past five days, Bitfarms’ shares rose 0.74% while Riot’s shares are up 2.68%.

by Jamie Redman | Original Link