Bitfarms Ltd. (Nasdaq/TSX: BITF), a global vertically integrated Bitcoin company, has acknowledged receipt of a shareholder meeting request from Riot Platforms, Inc. This request is intended to gain control over Bitfarms’ Board of Directors, according to GlobeNewswire.
Bitfarms’ response to Riot’s proposal
Bitfarms’ Board of Directors and management team have reiterated their commitment to act in the best interests of the company and its shareholders. A Special Committee of independent directors was established to assess strategic alternatives and maximize shareholder value. The committee found that Riot’s April 22, 2024 proposal of $2.30 per share, which represented a 22% discount to Bitfarms’ June 21, 2024 closing price, significantly undervalued the company.
Despite offering a confidentiality and standstill agreement to allow for a better proposal, Riot refused to cooperate constructively. The Special Committee expressed its disappointment at Riot’s continued attempts to undermine the process and harm the interests of other shareholders.
Commitment to shareholders
Bitfarms emphasized its commitment to constructive engagement with all shareholders and will review the application and provide updates in due course. Currently, no action is required from Bitfarms shareholders.
Advisors and legal advisors
Bitfarms has retained Moelis & Company LLC as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP, Peterson McVicar LLP and McMillan LLP as legal advisors. Innisfree M&A Incorporated and Laurel Hill Advisory Group have been retained as strategic advisors and proxy recruitment agents.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin mining company that contributes computing power to mining pools and receives payments in Bitcoin. The company operates 12 Bitcoin mining facilities and is developing an additional location. Bitfarms is committed to the use of sustainable energy, mainly hydropower.
Visit them for more information about Bitfarms website or follow them on social media platforms such as Facebook, Twitter, Instagram and LinkedIn.
Forward-Looking Statements
This press release contains forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors affecting these statements include the success of the strategic alternatives assessment process, the construction and operation of facilities, fluctuations in the digital currency market and regulatory changes. Bitfarms undertakes no obligation to revise or update any forward-looking information, except as required by law.
Contact details
For investor relations, please contact Tracy Krumme, SVP, Head of IR & Corp. Comms., at +1 786-671-5638 or via email at tkrumme@bitfarms.com. For US media inquiries, please contact Joele Frank, Wilkinson Brimmer Katcher at +1 212-355-4449. In Québec, contact Louis-Martin Leclerc at Tact at +1 418-693-2425 or via email at lleclerc@tactconseil.ca.
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