Bitfarms and Riot Platforms Reach Settlement Agreement on Acquisition Dispute

ChainCatcher news, according to The Block, Bitfarms and Riot Platforms have reached a settlement, which may mean the end of the acquisition dispute between the two Bitcoin mining companies. According to the terms of the agreement, Bitfarms co-founder Andres Finkielsztain has resigned from the board, and Riot-nominated independent director Amy Freedman (a corporate governance and capital markets expert with over 25 years of experience) will take over his position, effective immediately. Riot has agreed to withdraw its amended request and accept the regular standstill provisions until Bitfarms' 2026 annual meeting.

Currently, Riot holds 19.9% of Bitfarms' common stock. Under the settlement agreement, Bitfarms has granted Riot certain rights, allowing Riot to purchase additional shares of the company as long as Riot holds 15% or more of the outstanding common stock. However, under the standstill provisions, Riot is still prohibited from acquiring more than 20% of Bitfarms' shares without prior board approval unless Riot intends to make another formal acquisition.

On Monday, Riot stated that it intends to regularly review its investment in Bitfarms and may increase or decrease its stake in the company.