Riot Vs Bitfarms Heats Up As Bitfarms Responds To Misleading Claims

Key points:

• On Tuesday, Riot’s executive chairman and CEO expressed concern about Bitfarms’ recent governance changes and the proposed acquisition of Stronghold Digital.
• The following day, Bitfarms responded to what it called “misleading” claims from Riot.

The battle between Riot vs Bitfarms heats up as Riot questions Bitfarms’ governance and takeover while Bitfarms defends its board and acquisition strategy ahead of a special meeting.

Riot vs Bitfarms: Concerns Over Governance and Strategy

In the ongoing takeover battle between Riot Platforms and Bitfarms, Riot’s leadership, including Executive Chairman Benjamin Yi and CEO Jason Les, have voiced concerns about Bitfarms’ recent governance changes and the proposed acquisition of Stronghold Digital.

Riot criticized Bitfarms’ board reorganization as “reactive” and insufficient to address governance issues, arguing that Bitfarms needs independent directors to act in the best interests of all shareholders, not just the former board members. This comes ahead of a crucial shareholder vote on reconstituting Bitfarms’ board.

Read more: Bitfarms Poison Pill Plan Was Deployed To Prevent Riot’s Monopoly

Bitfarms Defends Acquisition and Leadership in Riot vs Bitfarms Dispute

In response, Bitfarms accused Riot of making misleading statements, claiming that the special meeting was not about corporate governance but rather Riot’s attempt to acquire Bitfarms at a discount. Bitfarms continued to defend its board changes and proposed the acquisition of Stronghold, which would significantly increase the company’s capacity by 2025.

As Riot continued to buy Bitfarms shares and become the company’s largest shareholder, tensions remained high ahead of the scheduled special meeting on October 29. Both sides aimed to sway shareholders in their favour.