- Bitfarms has entered into a settlement agreement with Riot.
- The development came after Riot attempted a hostile takeover of Bitfarms.
- Bitfarms co-founder stepped down from his role following the development.
Riot Platforms has entered into a settlement agreement with rival Bitcoin miner Bitfarms, ending a four-month dispute that saw Riot attempt a hostile takeover of the Canada-based company.
The dispute started in April when Riot made an unsolicited $950 million offer to acquire Bitfarms under a proposed union that would create the “premier and largest” Bitcoin miner globally. Bitfarms quickly shot the bid down, arguing it undervalued the company and its growth prospects.
Bitfarms Settles with Riot Platforms
In a press release on September 23, Bitfarms said it had quashed its dispute with Riot ahead of the Special Meeting of Bitfarms Shareholders scheduled for November 6.
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Per the settlement agreement, Bitfarms co-founder Andres Finkielsztain has stepped down from the company’s board, with Riot’s proposed independent director Amy Freedman assuming his roles immediately.
Bitfarms said Riot agreed to withdraw its recently amended requisition and to accept customary standstill provisions until the company’s next annual meeting, with certain exceptions. Additionally, Bitfarms has provided Riot with specific rights to purchase its shares, provided it holds at least 15% of Bitfarms’ outstanding common shares.
“We are pleased to reach this agreement with Riot and look forward to turning our full attention to executing our growth strategy. We remain focused on diversifying the business beyond Bitcoin mining into exciting and synergistic new areas like energy generation, energy trading, heat recycling and other high value revenue streams like HPC/AI.” Bitfarms CEO Jason Les stated.
Confirming the development, Riot said in a separate statement that it beneficially owned a 19.9% stake in Bitfarms “immediately prior to, and immediately after” the settlement agreement.
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