Riot Platforms Inc (NASDAQ: RIOT) and Bitfarms Ltd (TSE: BITF) (NASDAQ: BITF) have reached a settlement agreement that’s put their recent dispute to rest.
Announced on Tuesday, the settlement follows a series of events that began earlier in 2024 when Riot made an unsolicited $950 million bid to acquire the latter. Bitfarms rejected the bid, which lead to an escalation where Riot sought to influence Bitfarms’ board composition and strategic direction.
The new agreement replacement an existing director on Bitfarm’s board with a voice that’s going to be an influence for Riot. In this case, the outgoing director is Andrés Finkielsztain and his replacement is named Amy Freedman.
Amy Freedman is a corporate governance and public capital markets expert with over 25 years of experience. She currently advises Ewing Morris and Co. Investment Partners, leading the fund’s investment engagements.
Previously, she was CEO of Kingsdale Advisors, specializing in shareholder services and governance. Amy also spent over 15 years as an investment banker with global firms like Stifel Financial Corp. and Morgan Stanley.
Amy also serves as a director on the boards of Mandalay Resources Corporation (TSE: MND) (OTCMKTS: MNDJF), Irish Residential Properties REIT plc (ISE: IRES), and American Hotel Income Properties REIT (TSE: HOT.U).
“Additionally, we recognize the importance of refreshment and having the right mix of skills, experience and diversity, and we are always open to adding qualified candidates with valuable insights and perspectives to strengthen our board,” said Brian Howlett, independent chairman of Bitfarms.
Read more: Riot Platforms plays the next gambit in takeover bid for Bitfarms
Read more: Riot Platforms merger with Bitfarms obstructed by poison pill tactics
Bitfarms shares rose higher after the announcement
Ultimately, Riot agreed to withdraw its requisition for a special shareholder meeting and consented to customary standstill provisions through Bitfarms’ 2026 annual meeting, signalling a more collaborative approach moving forward.
However, Riot retains the option to increase its stake or propose further corporate actions under specific conditions. Both companies are now focusing on their growth strategies without the distraction of corporate conflict.
The settlement sparked a positive market reaction, driving Bitfarms’ shares higher after the announcement. This truce reduces tension between Riot and Bitfarms. It also creates opportunities for future collaboration if Riot opts to pursue further integration or partnerships.
This outcome is part of a growing trend in the cryptocurrency mining sector toward consolidation and strategic alliances. Companies have increasing aimed to optimize operations and bolster their market positions in the volatile crypto economy.
The resolution of this dispute could serve as a corporate governance example in the evolving blockchain industry.
This development comes ahead of Bitfarms’ special meeting scheduled for November 6, 2024.
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