Bitfarms founder steps down from board after Riot takeover attempt
Riot Platforms, which owns 16.9% of Bitfarms’ stock, previously called for a vote to replace Nicolas Bonta with another board director
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Bitfarms founder Nicolas Bonta is stepping down from the company’s board of directors after facing pressure from rival bitcoin miner Riot Platforms, which sought to replace him.
Upon the former board chair’s departure, the company named Brian Howlett as its new chair, Bitfarms said Tuesday.
Additionally, Bitfarms CEO Ben Gagnon — named to that post last month — will join the board.
“Now is the right time for me to step down and for Ben to join the board,” Bonta said in a statement. “I am equally confident in Brian’s ability to lead the Board as we look ahead to the next phase of Bitfarms’ growth.”
Following the latest board shakeup, four of the board’s five members are “independent,” Bitfarms noted in a Tuesday news release.
The moves follow Riot Platforms’ accusations that Bitfarms suffers from “poor corporate governance practices and a consistent inability to realize its full potential.” Riot, which previously attempted to acquire Bitfarms, owned 16.9% of BITF stock as of July 29.
Read more: A deeper look at Riot’s ‘hostile’ bid to take over Bitfarms
Riot previously called for a vote to replace Bonta, as well as directors Andrés Finkielsztain and Fanny Philip, with three other independent directors it nominated. That vote was set to take place at an upcoming meeting on Oct. 29.
Bonta was Bitfarms’ interim CEO after the company ousted Geoffrey Morphy from the CEO post in May. Morphy filed a statement of claim against Bitfarms in the Superior Court of Ontario claiming $27 million worth of damages for alleged breach of contract and wrongful dismissal. Bitfarms had said the claims are “without merit.”
Spokespeople for Bitfarms and Riot Platforms did not return Blockworks’ request for comment on the latest board moves.
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