In the ongoing power struggle between two major Bitcoin mining firms, Riot Platforms and Bitfarms, the latter has made a strategic move by appointing a new board member to thwart what it perceives as a hostile takeover attempt.

On June 24, Riot Platforms, which holds a 14.9% stake in Bitfarms, announced its intention to replace three members of Bitfarms’ board of directors with independent directors. This decision was prompted by Bitfarms' current board members blocking Riot’s effort to increase its ownership to more than 15%. Initially, Riot had planned to acquire all Bitfarms' common shares at $2.30 per share but later withdrew the offer, citing difficulties in cooperating with the existing board.

Riot stated, “[It] is clear that engaging with the incumbent Bitfarms Board on a potential combination is just not possible.” In response, Bitfarms announced on June 27 the appointment of Fanny Philip as an independent board member. With Philip's addition, four out of the five board members are now independent. In contrast, Riot had proposed replacing the original board members with three individuals who would be completely independent of both Riot and Bitfarms: John Delaney, Amy Freedman, and Ralph Goehring.

Fanny Philip brings significant expertise to the board, being a member of the Canadian Blockchain Consortium’s mining committee and president of its Québec Chapter. Riot Platforms did not respond to requests for comment from Cointelegraph regarding the situation.

As the interest in artificial intelligence (AI) grows and Bitcoin continues its widespread adoption, investors are increasingly looking to Bitcoin miners as demand for computational power surges. This burgeoning demand is also reflected in other significant investments in the sector. For instance, Bitcoin miner Hut 8 secured a $150 million investment on June 24 from Coatue Management, owned by billionaire Philippe Laffont. Laffont expressed confidence in Hut 8’s potential, stating the firm is "well-positioned" to enhance its compute capacity and "capitalize" on new opportunities arising from increased demand for computational power.

The transaction involving Hut 8 is expected to be completed by July 11. On June 21, Hut 8 filed the investment agreement with Coatue with the United States Securities and Exchange Commission. Hut 8, one of the largest public mining companies in terms of computing power, currently has a market capitalization valued at $1.1 billion.

These developments indicate a dynamic and competitive landscape in the Bitcoin mining industry, with firms maneuvering to secure advantageous positions amid growing demand and evolving market conditions.