Bitfarms Sets Oct. 29 Vote on Riot’s Bitcoin Mining Takeover
Bitfarms has scheduled a special shareholders meeting for Oct. 29, responding to Riot’s requisition last month as part of its plan to take over the Canadian bitcoin mining rival.
On Friday, Bitfarms announced that shareholders of record as of Sept. 26 are entitled to vote at the meeting. Through this requisition, the Texas-headquartered bitcoin mining giant Riot aims to gain shareholder approval to remove three existing board directors of Bitfarms and to appoint its nominees.
As previously reported, Riot invested $132 million to accumulate a 14.9% stake in Bitfarms at an average price of $2.24 per share as of June 24, in its bid to acquire the Canadian competitor.
Bitfarms noted that Riot requested the shareholding record date not be set until after a hearing with the Ontario Securities Commission on July 22 and 23. Bitfarms believes Riot plans to nullify its shareholder rights plan.
Last month, Bitfarms announced a shareholder rights plan, known as a “poison pill” strategy, to fend off Riot’s hostile takeover. This plan will dilute its shares if any individual or entity becomes a beneficial owner of more than 15% on or before September 10. The threshold will be relaxed to 20% after Sept. 10. It remains to be seen if Riot will continue its buying spree.
Earlier this week, Bitfarms announced the promotion of Ben Gagnon from Chief Mining Officer to Chief Executive Officer. On the same day, Riot launched a website called “A Better Bitfarms” to expose what it described as “Bitfarms’ broken corporate governance” to shareholders.
