Bitfarms, a leading Bitcoin mining company, surprised the industry by appointing Fanny Philip as an independent board member amidst its conflict with Riot Platforms. Riot, which owns a 14.9% stake in Bitfarms, recently expressed its desire to replace three board members with independent directors after failing to increase its stake. The appointment of Fanny Philip, an expert in blockchain technology and finance, brings the total number of independent board members to four out of five. Philip’s extensive experience in various blockchain and mining companies, as well as her deep knowledge of the North American and European energy sectors, digital assets, mining, and AI, were highlighted by Edie Hofmeister, Chair of Bitfarms’ Governance and Nominating Committee. With her appointment, Bitfarms aims to leverage her expertise to achieve significant organic growth and capture a larger share of the global demand for Bitcoin.
This appointment comes in the midst of a conflict with Riot Platforms, which had attempted a takeover of Bitfarms but was rejected. Riot then acquired a 9.25% stake in Bitfarms and announced its intention to replace three board members. However, the current board members blocked Riot’s attempt to increase its ownership to over 15%. The ongoing dispute between the two companies led Riot to requisition a special meeting of Bitfarms’ shareholders, where it plans to replace the three board members with independent directors.
The appointment of Fanny Philip is timely as the Bitcoin mining industry is experiencing increased interest due to the growing demand for computational power driven by AI and the widespread adoption of Bitcoin. This is evidenced by Coatue Management’s recent $150 million investment in Hut 8, another Bitcoin mining company. Bitfarms has engaged Moelis & Company LLC as a financial advisor and has legal support from Skadden, Arps, Slate, Meagher & Flom LLP, Peterson McVicar LLP, and McMillan LLP. Innisfree M&A Inc. and Laurel Hill Advisory Group are strategic advisors and proxy solicitation agents. With these strategic developments and the new appointment, Bitfarms aims to maximize shareholder value and potentially resolve the ongoing conflict with Riot.
In addition to these developments, Bitfarms recently announced plans to expand its operations to Sharon, Pennsylvania, and secured a significant agreement to develop a new mining facility for its strategic expansion. The company is making concerted efforts to navigate the market dynamics and industry trends surrounding the Bitcoin mining sector, with the ultimate goal of maximizing shareholder value and finding common ground with Riot.
