Bitcoin mining firm Bitfarms has fired its CEO, Geoffrey Morphy, effective immediately. The decision comes after Morphy filed a lawsuit against the company claiming $27 million in damages for breach of contract.

Morphy was promoted to CEO in December 2022, but in March, Bitfarms announced that he would be departing the company once a new CEO was appointed. Morphy filed a lawsuit on Friday claiming damages for breach of contract, wrongful dismissal and punitive damages.

Bitfarms believes the claims are without merit and intends to defend itself. Nicolas Bonta, Chairman and co-founder of Bitfarms, has been appointed interim President and CEO. Bitfarms' stock is currently trading at $1.55, a 10% decrease following the news. The firm's share price has fallen over 50% year-to-date.

The first-quarter conference call, originally scheduled for today, has been rescheduled to May 15 at 8 a.m. ET. Morphy did not immediately respond to a request for comment. Bitfarms is a Toronto-based Bitcoin mining firm that engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina.

It owns and operates server farms that validate transactions on the Bitcoin Blockchain and earns cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada.