Riot has called for a special meeting of Bitfarms shareholders to reconstitute its board, citing urgent governance issues, after withdrawing its previous acquisition proposal.
Riot Platforms, a public U.S.-based Bitcoin mining company, has taken a new step in its ongoing efforts to influence the future direction of Bitfarms, requisitioning a special meeting of Bitfarms shareholders.
Riot, which currently holds approximately 14.9% of Bitfarms, aims to reconstitute the Bitfarms board of directors by removing Bitfamrs interim chief executive Nicolas Bonta, director AndrĂ©s Finkielsztain, and any recent appointee following Emiliano Grodzkiâs resignation, according to a press release seen by crypto.news.
The Colorado-headquartered company says Bonta and Finkielsztain âbear direct responsibility for the Bitfarms boardâs poor corporate governance practices and consistent inability to realize Bitfarmsâ full potential.â
âRiot will also seek to remove any additional director appointed by the Bitfarms board after the date of this press release.â Riot Platforms
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In its turn, Riot nominated three directors, John Delaney, Amy Freedman, and Ralph Goehring, to replace Bonta and Finkielsztain, citing the need to âfix Bitfarmsâ broken corporate governance.â
Riotâs latest move comes after months of attempts to engage with Bitfarms regarding a potential merger. Riot has now explicitly withdrawn its $950 million proposal to buy Bitfarms, stating that âengaging with the incumbent Bitfarms board on a potential combination is just not possible.â
The special meeting will allow shareholders to vote on the proposed changes, which Riot believes are essential due to the Bitfarms boardâs mishandling of chief executive succession as âgood faith negotiations simply will not be possible until there is real change in the Bitfarms boardroom.â
Read more: Bitcoin miner Riot Platforms acquires 12% stake in Bitfarms