Blockchain
Bitfarms (BITF) faces shareholder meeting request from Riot Platforms
Bitfarms Ltd. (Nasdaq/TSX: BITF), a global vertically integrated Bitcoin company, has confirmed that it has received a request for a shareholder meeting from Riot Platforms, Inc. This request seeks to gain control of Bitfarms’ board of directors, according to GlobeNewswire.
Bitfarms’ Response to Riot’s Proposal
Bitfarms’ Board of Directors and management team reiterated their commitment to acting in the best interests of the company and its shareholders. A special committee of independent directors has been established to review 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’ closing price on June 21, 2024, significantly undervalued the company.
Despite offering Riot a confidentiality and standstill agreement to facilitate a better proposal, Riot refused to engage constructively. The Special Committee expressed disappointment with Riot’s continued attempts to undermine the process and harm the interests of other shareholders.
Commitment to shareholders
Bitfarms has underlined its commitment to constructive engagement with all shareholders and will review the request, providing updates in due course. Currently, no action is required from Bitfarms shareholders.
Consultants and legal advice
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 solicitation agents.
About Bitfarms Ltd.
Founded in 2017, Bitfarms is a global Bitcoin mining company that provides computational power to mining pools, receiving payments in Bitcoin. The company operates 12 Bitcoin mining facilities and is developing an additional site. Bitfarms is committed to using sustainable energy, predominantly hydroelectric.
For more information about Bitfarms, visit their website or follow them on social media like Facebook, Twitter, Instagram and LinkedIn.
Forward-Looking Statements
This press release includes forward-looking statements, which involve risks and uncertainties that could cause actual results to differ materially from those projected. Factors that affect these statements include the success of the strategic alternatives review process, the construction and operation of facilities, digital currency market fluctuations, and regulatory changes. Bitfarms undertakes no obligation to revise or update any forward-looking information, except as required by law.
Contact information
For investor relations, contact Tracy Krumme, SVP, Head of IR & Corp. Comms., at +1 786-671-5638 or by email at e-mail: tkrumme@bitfarms.comFor media inquiries in the United States, please contact Joele Frank, Wilkinson Brimmer Katcher at +1 212-355-4449. In Quebec, contact Louis-Martin Leclerc of Tact at +1 418-693-2425 or by email at lmleclerc@tactconseil.ca.
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