Business
Riot Issues Open Letter to Fellow Bitfarms Shareholders Ahead of Upcoming Special Meeting
Details the Need for Further Change at Bitfarms in Order to Fix Broken Governance and Enhance Value for All Shareholders Reduces Proposed Slate of New
About this update from Riot Platforms, Inc.
[{"type":"text","content":"\nDetails the Need for Further Change at Bitfarms in Order to Fix Broken Governance and Enhance Value for All Shareholders\n\n\nReduces Proposed Slate of New Directors From Three to Two in Light of Bitfarms’ Recent Moves in Response to Public Pressure from Riot\n\n\nWarns Bitfarms Not to Take Any Additional Actions to Entrench the Existing Board Prior to the October 29 Special Meeting\n\n\nAdditional Information Available at www.ABetterBitfarms.com\n\n\n CASTLE ROCK, Colo.--(BUSINESS WIRE)--\nRiot Platforms, Inc. (NASDAQ: RIOT) (“Riot”) today issued an open letter to Bitfarms Ltd. (NASDAQ/TSX: BITF) (“Bitfarms” or the “Company”) shareholders. The full text of the letter is below:\n\n\nDear Fellow Bitfarms Shareholders,\n\n\nRiot currently owns approximately 19.9% of Bitfarms, making us Bitfarms’ largest shareholder. As we approach the October 29 special meeting of Bitfarms’ shareholders (the “Special Meeting”), we want to share our perspectives on the recent actions taken by Bitfarms, including changes to its Board of Directors (the “Bitfarms Board”) and the proposed acquisition of Stronghold Digital Mining, Inc. (“Stronghold”). We also want to provide an update on our campaign to bring urgently needed change to the Bitfarms Board.\n\n\nFurther Board Change Is Needed\n\n\nOur focus remains on fixing Bitfarms’ broken governance to enhance value for all shareholders. In order to achieve this objective, additional fresh perspectives are required in Bitfarms’ boardroom.\n\n\nSince we initiated our campaign, two of Bitfarms’ three co-founders – Emiliano Grodzki and Nicolas Bonta – have resigned from the Bitfarms Board. Notably, Mr. Grodzki only resigned after shareholders voted not to re-elect him by a significant margin at Bitfarms’ May 31, 2024 annual and special meeting of shareholders. Bitfarms subsequently appointed Fanny Philip to replace Mr. Grodzki, appointed Ben Gagnon as Chief Executive Officer and a member of the Bitfarms Board to replace Mr. Bonta, and made other executive leadership changes.\n\n\nWhile these changes represent a step in the right direction, they have been reactive and insufficient to address Bitfarms’ broken governance. These actions followed Riot’s sustained public pressure and would not have occurred had Riot not challenged the entrenchment of the Bitfarms Board. The evidence is clear: Bitfarms needs ad...