Bitfarms Settles With Riot Platforms

(RTTNews) - Bitfarms Ltd. (BITF), a bitcoin mining company, Monday said it has entered into a settlement agreement with its rival Riot Platforms Inc. (RIOT), which owns 18.9 percent stake in Bitfarms.

On June 24, this year, Riot had requisitioned a special meeting of shareholders to seek removal of Bitfarms Chairman Nicolas Bonta and directors Andrés Finkielsztain and Fanny Philip from the company's Board of Directors, and replace them with three independent director candidates nominated by Riot.

As per the agreement, Andrés Finkielsztain has stepped down from Bitfarms' Board. The company has appointed Amy Freedman, currently an advisor to Ewing Morris and Co. Investment Partners, to its Board, effective immediately.

"Riot has agreed to withdraw its June 24, 2024 requisition, as amended, and to accept customary standstill provisions through the Bitfarms 2026 Annual Meeting, with certain exceptions," the company said in a statement.

As agreed by Riot, the company will ask shareholders to increase the number of board members to 6 from 5; select an independent director nominated by the board, and to ratify shareholder rights plan.

The company has provided Riot with certain rights to purchase shares of the company to the effect that Riot holds 15% or more of the outstanding common shares.