TechFlow News, on September 24, according to The Block, Bitcoin mining companies Bitfarms and Riot Platforms have announced a settlement agreement that could resolve their acquisition dispute. Under the agreement, Bitfarms co-founder Andres Finkielsztain has resigned from the board of directors, effective immediately, and will be replaced by Amy Freedman, an independent director nominated by Riot.
Riot currently holds 19.9% of Bitfarms' outstanding common shares. The agreement grants Riot the right to purchase additional shares as long as it maintains ownership of 15% or more of Bitfarms’ outstanding common stock. However, under a standstill provision, Riot may not acquire more than 20% of the shares without prior board approval unless it intends to launch another formal takeover bid. Riot stated it will periodically review its investment in Bitfarms and may increase or decrease its stake accordingly.
The special shareholder meeting of Bitfarms, originally scheduled for November 6, may be postponed to occur before November 20. The meeting will include discussions on nominating a fifth independent director and voting on Bitfarms’ shareholder rights plan, which Riot has agreed to support.
