Bitcoin

when

Gains

Bitfarms made a strategic decision to strengthen its defenses against Riot Platforms’ “hostile takeover” approach. On June 27, Bitfarms announced the appointment of Fanny Philip as an independent board member, in an effort to protect its autonomy and fight Riot’s aggressive moves.
<h2 id="span-style-font-weight-400-the-riot-platforms-and-bitfarms-battle-span">The Riot Platforms and Bitfarms Battle</h2>
The drama began on June 24 when Riot Platforms, which owns a 14.9% share in Bitfarms, announced its desire to replace three board members with independent directors. Riot’s attempt to increase its ownership above the 15% level was vetoed by current board members, prompting this aggressive step. Riot’s initial plan to <a href="https://thecoinrise.com/bitfarms-posts-q2-financial-report-records-142m-net-loss/" rel="noopener noreferrer nofollow">acquire all of Bitfarms’ common shares</a> at $2.30 per share was abandoned, with Riot claiming, “[It] is clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible.”
<h3 id="span-style-font-weight-400-bitfarms-quickly-appointed-philip-span">Bitfarms Quickly Appointed Philip</h3>
In response, Bitfarms quickly <a href="https://x.com/Bitfarms_io/status/1806494524987912362" rel="noopener noreferrer nofollow">appointed</a> Philip, who brings extensive experience to the table. She is president of the Canadian Blockchain Consortium’s Québec Chapter and a member of the mining committee. With Philip’s appointment, four of Bitfarms’ five board members are now independent, in sharp contrast to Riot’s intention to install three wholly independent directors: John Delaney, Amy Freedman, and Ralph Goehring.
This boardroom drama takes place against the backdrop of rising interest in artificial intelligence (AI) and Bitcoin’s expanding usage, which has resulted in massive investment in Bitcoin mining operations. <a href="https://thecoinrise.com/marathon-digital-records-a-58-decline-in-q4-revenue-details/" rel="noopener noreferrer nofollow">Investors are making large bets on Bitcoin miners</a>, anticipating an increase in demand for processing power.
<h2 id="span-style-font-weight-400-competition-gains-advantage-span">Competition Gains Advantage</h2>
On June 24, <a href="https://thecoinrise.com/hut-8-starts-construction-on-63mw-bitcoin-mining-site-in-texas/" rel="noopener noreferrer nofollow">bitcoin miner Hut 8</a> received a $150 million investment from Coatue Management, which is owned by billionaire Philippe Laffont. Laffont voiced confidence in Hut 8’s future, claiming that the company is “well-positioned” to expand its processing capacity and capitalize on emerging prospects in the AI and cryptocurrency industries.
“We are committed to supporting innovators advancing AI and believe that compute capacity is crucial to unlocking significant growth across the ecosystem,” according to Laffont. The acquisition is scheduled to be completed by July 11, after Hut 8 filed the investment agreement with the US Securities and Exchange Commission on June 21.
Hut 8 stands out as one of the greatest public mining firms in terms of processing capacity, with a market capitalization of $1.1 billion. This significant investment demonstrates the growing strategic importance of computational power in AI and cryptocurrency mining.
The post <a href="https://thecoinrise.com/bitfarms-bolsters-board-amid-hostile-takeover-threat-from-riot-platforms/" rel="noopener noreferrer nofollow">Bitfarms Bolsters Board Amid Hostile Takeover Threat from Riot Platforms</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Bitfarms Bolsters Board Amid Hostile Takeover Threat from Riot Platforms

Table of Contents

TheCoinrise Media

Other articles published on Jun 28, 2024

Future Trend Forecast of Hong Kong Online Casino Industry

Bitdeer to Expand Bitcoin Mining With Industrial Park Lease

Best Crypto To Buy: Three Altcoins Destined To Be Future Top 5 Stars

Cardano Foundation Reveals ICC Ranking Candidates Amid Chang Hard Fork Transition

Alchemy Partners with ZetaChain to Boost Blockchain Development

Solana Soars 6% As VanEck Files For First Solana ETF And Analysts Predict Speedy Approval If Dona...

Join our free newsletter for daily crypto updates!