Riot Platforms and Bitfarms have recently reached an agreement to settle their dispute, as stated in a joint announcement on September 23, 2024. This agreement, which has been filed with the U.S. Securities and Exchange Commission (SEC), comes ahead of Bitfarms’ special shareholder meeting scheduled for November 6, 2024.
As part of the settlement deal, Riot has agreed to withdraw its request to replace certain directors on Bitfarms’ board. In return, Bitfarms has appointed Amy Freedman to its board and assigned her to important committees such as 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. As a significant shareholder, Riot is entitled to nominate a qualified individual to the board, as long as the nominee meets the criteria outlined in the agreement.
This settlement marks the end of Riot’s attempt to influence Bitfarms’ governance, which had led to the scheduling of a special shareholder meeting. As part of the agreement, Riot has agreed to support the resolutions that will be presented during the November 6 meeting, including the expansion of Bitfarms’ board from five to six members.
Both parties view this settlement as a positive resolution that serves the best interests of shareholders, with Riot maintaining its position as Bitfarms’ largest shareholder. In the past five days, Bitfarms’ shares have increased by 0.74%, while Riot’s shares have risen by 2.68%.
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