Bitfarms stated on Might 29 that it rejected Riot Platform’s unsolicited acquisition proposal as a result of the provide undervalued the corporate.
The proposal, obtained on April 22, supplied $2.30 per widespread share in a mixture of money and Riot widespread inventory — amounting to a $950 million provide.
Bitfarms’ Particular Committee of Unbiased Administrators reviewed the provide and concluded it undervalued the corporate’s development prospects.
Controversy
The proposal got here at a posh time for Bitfarms, which is conducting a CEO search following the abrupt termination of its former CEO, Geoffrey Morphy, on Might 13.
Morphy, who joined Bitfarms in 2020 and have become CEO in 2022, has filed a lawsuit towards the corporate, claiming $27 million in damages for breach of contract and wrongful dismissal.
The authorized dispute has added uncertainty to the manager transition, however Bitfarms’ Chairman and Co-Founder, Nicolas Bonta, has stepped in as interim President and CEO till a everlasting substitute is discovered.
Riot Platforms stated its unsolicited provide was pushed by considerations that the board was not performing in one of the best curiosity of shareholders as a result of allegations made within the former CEO’s lawsuit.
Extra curiosity
Regardless of the management turmoil, Bitfarms stated it has attracted further unsolicited curiosity from different events. Every occasion has executed a customary Non-Disclosure Settlement, and the Particular Committee is conducting a complete overview of strategic options to make sure most shareholder worth.
In accordance with the corporate, these options may embrace persevering with with Bitfarms’ present marketing strategy, a strategic enterprise mixture, or a sale of the corporate. It added that the board stays dedicated to “maximizing value for all shareholders.”
Bitfarms emphasised that the CEO search is progressing, and it continues to concentrate on its growth and fleet improve. The corporate goals to attain a hashrate of 21 EH/s and effectivity of 21 w/TH in 2024, representing a major improve in each development and effectivity in comparison with its friends.
Bitfarms has 12 Bitcoin mining services in operation and one beneath improvement, unfold throughout Canada, the US, Paraguay, and Argentina.
