Bitfarms - BITF STOCK NEWS

Riot Platforms, NASDAQ: RIOT, has launched www.ABetterBitfarms.com to inform shareholders about issues with Bitfarms' corporate governance and propose changes to its Board of Directors. Riot has called for a special shareholders' meeting to vote on its three nominees: John Delaney, Amy Freedman, and Ralph Goehring. These nominees aim to replace current board members including Chairman Nicolas Bonta, Andrés Finkielsztain, and recent appointee Fanny Philip. The website provides resources for stakeholders to learn more, share their views anonymously, and stay updated on Riot's initiatives. Riot emphasizes the need for new perspectives and stronger governance at Bitfarms.

Bitfarms (NASDAQ/TSX: BITF) has appointed Ben Gagnon as its new Chief Executive Officer, effective immediately. Gagnon, who previously served as Chief Mining Officer, brings extensive experience in Bitcoin mining to his new role. He has been with Bitfarms since 2019, holding various leadership positions and contributing significantly to the company's growth strategy. The appointment is part of Bitfarms' broader plan to expand and diversify its business, including ventures into energy generation, heat recycling, energy trading, and high-performance computing (HPC) for AI. The Board of Directors expressed confidence in Gagnon's ability to lead the company through its next phase of growth, particularly in the U.S. market. The company emphasized that this leadership change is independent of its ongoing review of strategic alternatives aimed at maximizing shareholder value.

Bitfarms announced its June 2024 production update, highlighting significant advancements in its operations and expansion plans. The company earned 189 BTC in June, up from 156 BTC in May, with operational hashrate reaching 10.4 EH/s. Energy efficiency improved to 25 w/TH, marking a 36% year-over-year increase.

Strategically, Bitfarms is expanding its U.S. footprint with a new 120 MW site in Sharon, Pennsylvania, aimed at supporting high-performance computing and AI. This raises the company's 2025 power capacity target to 648 MW, more than double its current capacity. Operational upgrades in Paraguay and Quebec further boosted hashrate and efficiency.

Financially, Bitfarms sold 134 BTC for $8.8 million, with total liquidity at $194 million. The company holds 905 BTC in treasury, valued at $55.2 million. Severe weather caused minor delays in Paraguay, but overall production increased due to improved hashrate and miner installations.

Bitfarms (Nasdaq/TSX: BITF), a global Bitcoin vertically integrated company, announced the appointment of Fanny Philip to its Board of Directors, effective immediately.

With her addition, the Board now consists of five directors, four of whom are independent. Ms. Philip is an expert in blockchain technology and a seasoned finance executive with significant experience in audit, public company reporting, and mergers and acquisitions.

She has previously held key positions such as CFO and VP Finances at Canada Computational Unlimited and COO at SATO Technologies. Currently, Ms. Philip serves as CFO at SOVIAGO and is actively involved in the Canadian Blockchain Consortium.

Her appointment is seen as a strategic move to enhance the Board's skill set, particularly in the areas of digital assets, mining, and AI, as Bitfarms aims to capture a larger share of the global demand for Bitcoin.

Bitfarms , a global Bitcoin vertically integrated company, has received a shareholder meeting requisition from Riot Platforms, Inc. to gain control of Bitfarms' Board of Directors. In response, Bitfarms' Board established a Special Committee to review strategic alternatives to maximize shareholder value. The Special Committee rejected Riot's proposal of $2.30 per share, deeming it significantly undervalued. Despite invitations to engage constructively, Riot has declined and taken steps to undermine the process. Bitfarms reiterates its commitment to shareholders' best interests and will provide updates as necessary. No immediate action is required from shareholders.

Riot Platforms acquired 1,432,063 common shares of Bitfarms on June 13, 2024, representing approximately 0.35% of Bitfarms' outstanding shares. Prior to this acquisition, Riot owned 56,194,973 shares or 13.65% of Bitfarms. Post-acquisition, Riot's ownership increased to 57,627,036 shares or 14.00%. Riot plans to request a special meeting to nominate new independent directors due to concerns about Bitfarms' governance. Riot may further adjust its investment based on various factors including market conditions and Bitfarms' strategic direction.

Bitfarms has announced an agreement to develop a 120 MW site in Sharon, Pennsylvania, strategically located in the PJM Interconnection market. This expansion increases Bitfarms’ 2025 power capacity to 648 MW, up 170% from its current 240 MW. The site, set to support 8 EH/s by 2025, with an initial deployment of 600 PH/s in 2024, offers access to flexible power and opportunities for cost optimization. This move enhances Bitfarms' geographical diversification and operational footprint in the U.S. The project will begin immediately, with 12 MW expected online in Q4 2024 and the remainder in the second half of 2025.

On June 12, 2024, Bitfarms, a global Bitcoin mining company, addressed comments from Riot Platforms regarding its ongoing strategic alternatives review process. Bitfarms’ Board of Directors remains focused on maximizing shareholder value despite Riot's unsolicited offers and attempts to disrupt the process. After evaluating Riot's proposal, a Special Committee determined that it undervalues Bitfarms and is not in the best interest of shareholders. Bitfarms adopted a Shareholder Rights Plan to ensure a fair review process. Riot's actions, including acquiring Bitfarms' shares on the open market, are seen as attempts to undermine this process. Bitfarms remains committed to evaluating all opportunities to enhance shareholder value.

Riot Platforms commented on Bitfarms' adoption of a shareholder rights plan, known as a 'Poison Pill'.

This plan prevents any shareholder from acquiring 15% or more of Bitfarms' shares without making a formal takeover bid. Riot criticized this move, stating it contradicts established legal and governance standards and reflects poor corporate governance.

CEO Jason Les highlighted that Riot had tried to privately engage with Bitfarms, urging the addition of independent directors and the resignation of Chairman Nicolas Bonta. Despite these efforts, Bitfarms implemented the Poison Pill with a lower-than-usual threshold, further entrenching its board.

Riot continues to advocate for better corporate governance at Bitfarms.