As an experienced analyst, I believe that Riot Platforms’ stance on the corporate governance issues at Bitfarms is a justified one. The adoption of the poison pill by Bitfarms, which directly conflicts with established legal and governance standards, raises concerns about the company’s commitment to transparency and shareholder rights.
Despite Bitfarms’ implementation of a “poison pill” defense, Riot Platforms remains committed to working on resolving the significant corporate governance concerns they have identified.
In a recent press release on June 12th, Riot Platforms expressed disagreement with the implementation of Bitfarms’ Rights Plan, also known as a “poison pill,” stating that it goes against established legal and regulatory norms.
The Colorado-based firm asserts that its competitor’s latest move serves as “another indication” of Bitfarms’ board disregarding sound business practices, and they plan to further tackle the “significant concerns” surrounding Bitfarms’ corporate governance procedures.
“Moving forward, we are committed to tackling the significant corporate governance concerns at Bitfarms and giving shareholders a voice in shaping the company’s future direction.”
Riot Platforms CEO Jason Les
Les pointed out that Bitfarms’ latest moves suggested dissatisfaction on their part. He specifically mentioned the recent board vote, which resulted in the removal of co-founder Emiliano Grodzki only a fortnight prior.
In a recent press release, Bitfarms explained that their board of directors unanimously endorsed the implementation of a shareholder rights plan to safeguard the authenticity of its ongoing strategic review process. The company firmly believes that this move is beneficial for all Bitfarms’ shareholders.
According to the Rights Plan in effect, Bitfarms intends to issue extra shares to reduce an investor’s ownership if a party seeks to own more than 15% of the company’s shares. Riot Platforms, the current holder of approximately 47.83 million common shares (equaling 11.62% of Bitfarms’ outstanding shares), has expressed its intention to purchase all of Bitfarms’ common shares for $950 million.
Read More
Sorry. No data so far.
2024-06-13 10:46