The power struggle between two of the world’s largest bitcoin miners, Riot Platforms and Bitfarms, has escalated into a full-blown battle for control. In the latest round of corporate mudslinging, Riot’s top executives have expressed deep concerns over Bitfarms’ recent governance changes and its proposed acquisition of Stronghold Digital. This ongoing feud, which began with Riot’s initial takeover attempt in April, has captivated the cryptocurrency community as it could reshape the landscape of the bitcoin mining industry.
On Tuesday, Riot Platforms’ Executive Chairman Benjamin Yi and CEO Jason Les issued a strongly worded letter criticizing Bitfarms’ board of directors. They labeled Bitfarms’ governance changes as “reactive” and “insufficient,” arguing that the company needs more independent directors who can prioritize the best interests of all shareholders rather than just the legacy directors. Riot’s leadership emphasized the need for experienced and independent oversight to guide Bitfarms’ future strategy, a thinly veiled critique of the current board’s focus on self-preservation.
The next day, Bitfarms fired back, accusing Riot of misleading shareholders and attempting to acquire the company at a bargain price. Bitfarms’ leadership stated, “The upcoming special meeting is not about corporate governance, as Riot has repeatedly positioned it to be, but rather about Riot attempting to acquire Bitfarms at a discounted price for the benefit of Riot shareholders, not Bitfarms shareholders.” The miner also accused Riot of refusing to engage in constructive dialogue and instead resorting to public attacks.
This latest exchange highlights the increasingly acrimonious nature of the takeover battle. Since its initial bid, Riot has steadily increased its stake in Bitfarms, becoming its largest shareholder with a nearly 19.9% stake. Despite Riot’s aggressive tactics, Bitfarms has stood its ground, asserting that its recent board and leadership changes were made in the best interests of its shareholders, not to appease Riot. The company defended its proposed acquisition of Stronghold Digital, a move that could significantly boost its power capacity and position it as a leader in the bitcoin mining space.
As the special meeting on October 29 approaches, the outcome of this high-stakes battle remains uncertain. Riot’s push to reconstitute Bitfarms’ board could mark a turning point, but Bitfarms is clearly not backing down. The results could have far-reaching implications not only for the two companies involved but also for the broader cryptocurrency industry, where consolidation and power struggles are becoming increasingly common.
In the meantime, shareholders and industry observers alike will be watching closely as Riot and Bitfarms continue to vie for control. The stakes are high, and the future of one of the leading players in the bitcoin mining world hangs in the balance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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