Bitfarms (BITF) Faces Shareholder Meeting Requisition from Riot Platforms
Caroline Bishop Jun 25, 2024 15:50
Bitfarms receives a requisition from Riot Platforms for a shareholder meeting to gain control of its Board of Directors, according to GlobeNewswire.
Bitfarms Ltd. (Nasdaq/TSX: BITF), a global Bitcoin vertically integrated company, has confirmed receipt of a shareholder meeting requisition from Riot Platforms, Inc. This requisition aims to gain control of Bitfarms' Board of Directors, according to GlobeNewswire.
Bitfarms' Response to Riot's Proposal
The Bitfarms Board of Directors and management team have reiterated their commitment to acting in the best interests of the company and its shareholders. A Special Committee of independent directors was established to review strategic alternatives and maximize shareholder value. The committee found Riot's April 22, 2024 proposal of $2.30 per share, which represented a 22% discount to Bitfarms' closing price as of June 21, 2024, to significantly undervalue the company.
Despite offering Riot a confidentiality and standstill agreement to facilitate a better proposal, Riot declined to engage constructively. The Special Committee expressed disappointment over Riot's continued attempts to undermine the process and harm other shareholders' interests.
Commitment to Shareholders
Bitfarms emphasized its commitment to constructive engagement with all shareholders and will review the requisition, providing updates in due course. Currently, no action is required from Bitfarms shareholders.
Advisors and Legal Counsel
Bitfarms has engaged Moelis & Company LLC as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Peterson McVicar LLP, and McMillan LLP as legal advisors. Innisfree M&A Incorporated and Laurel Hill Advisory Group have been retained as strategic advisors and proxy solicitation agents.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin mining company that contributes computational power to mining pools, receiving payment in Bitcoin. The company operates 12 Bitcoin mining facilities and is developing an additional site. Bitfarms is committed to using sustainable energy, predominantly hydro-electric power.
For more information about Bitfarms, visit their website or follow them on social media platforms such as Facebook, Twitter, Instagram, and LinkedIn.
Forward-Looking Statements
This news release includes forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors affecting these statements include the success of the strategic alternatives review process, the construction and operation of facilities, digital currency market fluctuations, and regulatory changes. Bitfarms undertakes no obligation to revise or update any forward-looking information, except as required by law.
Contact Information
For investor relations, contact Tracy Krumme, SVP, Head of IR & Corp. Comms., at +1 786-671-5638 or via email at tkrumme@bitfarms.com. For media inquiries in the U.S., contact Joele Frank, Wilkinson Brimmer Katcher at +1 212-355-4449. In Québec, contact Tact's Louis-Martin Leclerc at +1 418-693-2425 or via email at lmleclerc@tactconseil.ca.
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