Bitfarms, a Bitcoin mining company, is experiencing significant board changes amidst a revenue drop and Riot’s attempted takeover bid. Nicolas Bonta, co-founder and chairman of Bitfarms, has decided to step down from the board in response to Riot Platforms’ aggressive takeover efforts. Riot aims to replace three board members in the upcoming October shareholder vote.
In light of Bonta’s departure, Brian Howlett, the lead director, will take on the role of independent chairman, while Ben Gagnon will step in as the new CEO and join the board. Liam Wilson will also assume the position of Chief Operating Officer (COO) on August 26. Edie Hofmeister, Chair of the Governance and Nominating Committee, emphasized the board’s commitment to creating long-term shareholder value through strategic planning.
Bitfarms is facing pressure from Riot, which attempted to acquire the company for $950 million in April, a bid that was rejected for undervaluing Bitfarms. Since then, Riot has acquired a significant stake in Bitfarms, reaching 15.9% ownership. Riot has criticized Bitfarms’ governance and called for the removal of the current board, accusing them of prioritizing their interests over those of shareholders.
The leadership changes at Bitfarms come at a challenging time, as the company reported a 16% drop in total revenue to $42 million in the second quarter. This decline is attributed to reduced block rewards following Bitcoin’s halving event in April, which cut miners’ block rewards in half. Bitfarms also disclosed operating losses of $23.6 million, including $46 million in accelerated depreciation on outdated mining equipment.
Overall, Bitfarms is navigating through board changes and revenue challenges amidst Riot’s hostile takeover bid. The company remains focused on building the right team to implement its strategic plan and deliver long-term value to its shareholders. As the Bitcoin mining industry continues to evolve, Bitfarms is working to adapt and thrive in a competitive market landscape.