Bitfarms agrees to board changes in settlement with Riot Platforms

Bitfarms (NASDAQ:BITF) and Riot Platforms (NASDAQ:RIOT) agreed to a settlement, in which Andrés Finkielsztain will step down from Bitfarms’ board, the companies announced on Monday.

Riot (RIOT) agreed to withdraw its June 24, 2024, requisition, as amended, and to accept customary standstill provisions through the Bitfarms 2026 annual meeting, with some exceptions.

The Bitfarms board will nominate an independent director for election at its special meeting of shareholders, which is currently scheduled for Nov. 6, 2024. As a result of the agreement to nominate an additional director, the special meeting may be delayed, but in no event will it be held after Nov. 20, 2024, the companies said.

Also as part of the settlement, Bitfarms (BITF) named Amy Freedman to its board and its Governance and Nominating Committee and Compensation Committee.

Freedman is currently an adviser to Ewing Morris and Co. Investment Partners, an alternative asset manager with both equity and credit strategies. Previously, she was CEO of Kingsdale Advisors, a shareholder services and advisory firm.

Bitfarms (BITF) has provided Riot (RIOT) with certain rights, subject to certain exceptions, to purchase shares of the company provided Riot holds 15% or more of the outstanding common shares of the Company.

“We are pleased to reach this agreement with Riot and look forward to turning our full attention to executing our growth strategy,” said Bitfarms CEO Ben Gagnon. “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 (BITF) stock rose 0.5% in Monday premarket trading.