In a significant development in the crypto mining landscape, Riot Platforms Inc (RIOT) announced on Monday that it has reached a settlement agreement with Bitfarms Ltd (BITF) regarding its ongoing takeover attempt of the company. The agreement marks an end to the contentious battle, paving the way for a new chapter for both companies.
The settlement was reached ahead of the upcoming special meeting of Bitfarms shareholders, scheduled for November 20. As part of the agreement, Andrés Finkielsztain has stepped down from Bitfarms’ board. In his place, Amy Freedman has been appointed to the board, as well as its governance and nominating committee and compensation committee.
Riot Platforms has agreed to withdraw its requisition and accept customary standstill provisions until Bitfarms’ 2026 annual meeting. This means Riot will not pursue its takeover bid and will refrain from making any hostile moves until the specified timeframe. Importantly, Riot has committed to voting in favor of proposals to expand Bitfarms’ board, elect an independent director, and ratify the company’s shareholder rights plan.
Brian Howlett, the independent chairman of Bitfarms’ board, emphasized the company’s commitment to overseeing the execution of its strategic plan and its focus on capitalizing on future opportunities. He also highlighted the importance of board refreshment and diversity, stating that the company is open to welcoming qualified candidates with valuable insights and perspectives.
The agreement also grants Riot Platforms certain rights to purchase shares of Bitfarms, provided Riot holds at least 15% or more of the outstanding common shares of the company. This provision allows Riot to maintain a significant influence on Bitfarms’ future even without a full takeover.
Jason Les, CEO of Riot, expressed satisfaction with the agreement, stating that it represents a crucial step towards creating shareholder value for both companies. He emphasized the constructive resolution reached with Bitfarms.
This settlement marks a turning point in the relationship between Riot Platforms and Bitfarms. While Riot’s takeover attempt has been abandoned, the agreement suggests a potential for continued collaboration between the two companies in the future. It remains to be seen how this agreement will ultimately impact the trajectory of both Riot and Bitfarms, but it is a significant development in the world of Bitcoin mining.
