Bitfarms Reports August BTC Generation Drop Amid Governance Tensions with Riot Platforms

Bitfarms Reports 8% BTC Revenue Drop Despite Increased Hashrate

Bitfarms Reports– Bitcoin miner Bitfarms announced it generated 233 BTC ($13.9 million) in August, marking a decrease of 8% from July’s 253 BTC. This drop is attributed to heightened network difficulty levels. Although Bitfarms’ operational hashrate grew 2% month-over-month to 11.3 EH/s, its revenue fell 39% year-over-year due to the halving event and near-record network hashrate. The company has sold 147 BTC ($8.8 million) as part of its treasury management strategy, adding 86 BTC ($5.1 million) to its holdings, which now total 1,103 BTC ($65.1 million).

Bitfarms Acquires Rival Stronghold Digital in $175 Million Deal

In August, Bitfarms agreed to acquire Stronghold Digital in a $175 million deal, financed through a combination of stock and debt. CEO Ben Gagnon highlighted that the acquisition will enhance Bitfarms’ energy portfolio, aiming for a 950 MW capacity expansion by the end of 2025, with nearly 50% of capacity based in the U.S.

Riot Platforms’ Concerns and Governance Disputes with Bitfarms

Riot Platforms, which previously attempted to acquire Bitfarms for approximately $950 million in April, has since become Bitfarms’ largest shareholder, owning about 19.9% of the company. In an open letter, Riot’s Executive Chairman Benjamin Yi and CEO Jason Les expressed concerns about Bitfarms’ recent governance changes and the Stronghold Digital acquisition. They criticized Bitfarms’ poison pill strategy and governance practices, urging for additional independent directors and better oversight to protect shareholder interests.

Riot Advocates for Board Overhaul Amidst Governance and Acquisition Issues

Riot Platforms called for further board changes at Bitfarms, citing the need for independent oversight. The criticism follows Bitfarms’ recent appointment of Fanny Philip and Ben Gagnon amid governance challenges. Riot also questioned the timing and pricing of the Stronghold Digital acquisition, arguing that it might not be in the best interest of Bitfarms’ shareholders.

Upcoming Special Meeting and Proposed Changes to Bitfarms’ Board

Bitfarms’ BTC Monthly Production

The special shareholders meeting on October 29 will be a critical event for Bitfarms, as Riot proposes to reduce its independent director nominations from three to two, replacing current directors Andres Finkielsztain and Fanny Philip. Riot’s proposed new directors, Amy Freedman and John Delaney, bring extensive experience in corporate governance and public affairs.

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