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Riot and Bitfarms settle dispute ahead of November shareholder meeting

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Riot Platforms and Bitfarms have reached a settlement, as detailed in a joint announcement on September 23, 2024. 

The resolution follows a contentious dispute between the two companies. 

The settlement comes just weeks before Bitfarms’ special shareholder meeting, scheduled for November 6, 2024. 

As part of the settlement, Riot agreed to withdraw its request to restructure Bitfarms’ board of directors. 

In exchange, Bitfarms appointed Amy Freedman to its board. 

Freedman will now serve on key committees, including the Governance and Nominating Committee, the Compensation Committee, and any special committee of independent directors. 

This move follows the resignation of Andrés Finkielsztain, which was also part of the settlement agreement. 

Riot, as a major shareholder in Bitfarms, retains the right to nominate a qualified individual to the board, provided the nominee meets the criteria outlined in the agreement. 

Riot’s involvement in Bitfarms’ governance had previously led to the scheduling of the special shareholder meeting. 

The agreement also includes Riot’s support for the resolutions that will be presented at the upcoming shareholder meeting, including a proposal to expand Bitfarms' board from five to six members. 

Both Riot and Bitfarms referred to the settlement as a “constructive resolution” that serves the best interest of their shareholders. 

Riot remains the largest shareholder in Bitfarms, maintaining a strong influence within the company. 

Over the past five days, Bitfarms’ shares have increased by 0.74%, while Riot’s shares have risen by 2.68%, reflecting investor response to the resolution of the dispute. 

The upcoming November meeting will focus on finalising these board changes, solidifying both companies' future direction under the new agreement.

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