On May 29, Bitfarms announced that it rejected Riot Platform’s unsolicited acquisition proposal, stating that the offer undervalued the company. The proposal, received on April 22, offered $2.30 per common share in a mix of cash and Riot common stock, totaling $950 million.

Bitfarms’ Special Committee of Independent Directors reviewed the offer and determined it did not reflect the company’s growth potential.

Controversy

This proposal came during a turbulent period for Bitfarms, which is searching for a new CEO after the abrupt termination of former CEO Geoffrey Morphy on May 13. Morphy, who joined Bitfarms in 2020 and became CEO in 2022, has sued the company for $27 million, alleging breach of contract and wrongful dismissal. This legal dispute has added uncertainty to the executive transition. In the interim, Bitfarms’ Chairman and Co-Founder, Nicolas Bonta, has stepped in as interim President and CEO.

Riot Platforms justified its unsolicited offer by expressing concerns that the board was not acting in the best interest of shareholders, partly due to the allegations in Morphy’s lawsuit.

Additional Interest

Despite the leadership turmoil, Bitfarms reported attracting additional unsolicited interest from other parties, all of whom have signed Non-Disclosure Agreements. The Special Committee is now thoroughly reviewing strategic alternatives to ensure maximum shareholder value. These alternatives include continuing with Bitfarms’ current business plan, a strategic business combination, or a sale of the company. The board remains committed to maximizing shareholder value.

Bitfarms highlighted that the CEO search is progressing and that the company continues to focus on expansion and fleet upgrades. Bitfarms aims to achieve a hashrate of 21 EH/s and an efficiency of 21 w/TH by 2024, marking significant growth and efficiency improvements compared to its peers.

The company operates 12 Bitcoin mining facilities and has one under development, spanning Canada, the United States, Paraguay, and Argentina.