U.S. publicly traded bitcoin miner Bitfarms has rescheduled its special meeting of shareholders by one week in order to reevaluate an amended requisition from Riot Platforms.
Bitfarms (BITF) rescheduled its meeting, first called in response to a requisition from Riot Platforms (RIOT) on June 24, moving it from Oct. 29 to Nov. 6. On Sept. 3, Riot amended its requisition, citing concerns over Bitfarms' recent governance changes and its proposed acquisition of Stronghold Digital ahead of the special meeting to vote on reconstituting Bitfarms' board of directors. Riot advocated for further changes to Bitfarms' board, citing a need for independent oversight and better governance practices to enhance shareholder value.
Riot initially sought to buy its smaller mining rival in April for about $950 million and since then has been buying up stock in Bitfarms to become its largest shareholder. Riot currently owns about 19.9% of Bitfarms.
"The Bitfarms Board is focused on acting in the best interests of ALL Bitfarms shareholders," Bitfarms said in Monday's press release. "On the contrary, it is clear that Riot, as a direct competitor to Bitfarms, is only focused on taking steps to support its shareholders, not Bitfarms or its shareholders. Recognizing the high costs and distraction associated with a proxy contest, the Bitfarms Special Committee continues to seek to engage constructively with Riot in an effort to resolve the Amended Requisition so that Bitfarms need not expend its cash resources to protect the interests of its shareholders against the actions of Riot."
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The Bitfarms Special Committee has proposed adding one mutually agreed upon board nominee to increase the board size to six, as well as a standstill and other customary provisions.
Bitfarms's stock traded higher by 4.7% to $1.88 per share at publication time. Riot's stock traded for around $650 a share.
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