Bitfarms questions Riot's proposed board nominees amid takeover attempt

Bitfarms has questioned the qualifications of Riot Platforms’ proposed board nominees, accusing Riot of using governance reforms as a cover for a takeover attempt.

Canadian Bitcoin (BTC) miner Bitfarms has pushed back against its rival Riot Platforms‘ proposed board changes, accusing the company of attempting a takeover at a discounted price.

In a Sept. 4 press release, the Toronto-headquartered company challenged Riot Platforms’ efforts to overhaul the company’s board, framing the move as part of a broader attempt to “acquire Bitfarms at a discounted price for the benefit of Riot shareholders.”

Riot, Bitfarms’ largest shareholder with a 19.9% stake, has been pushing for governance changes ahead of a special meeting on Oct. 29. Bitfarms countered Riot’s claims that the board changes are necessary to address “broken governance,” stating that the proposal is primarily aimed at benefiting Riot’s shareholders rather than those of Bitfarms.

“Riot has declined to engage with us constructively […] and has instead taken to public attacks and actions to harm the interests of other Bitfarms shareholders.”

Bitfarms

The Canadian miner also added that it is “not clear how Riot’s nominees could enhance the board,” defending recent leadership changes and its strategic plan, which includes a $175 million acquisition of Stronghold Digital Mining.

The acquisition, according to Bitfarms, aligns with its strategy to diversify power sources and expand its energy portfolio toward the U.S., increasing its capacity to over 950 MW by 2025.

Riot, in its own Sept. 3 statement, expressed concerns about the Stronghold deal and labeled Bitfarms’ recent governance actions as “defensive” moves meant to entrench existing board members. Riot is advocating for the election of Amy Freedman and John Delaney to replace two current directors, citing the need for “fresh perspectives” to enhance shareholder value.