Bitfarms Ltd. to Host Special Shareholder Meeting
By: Extreme Investor Network
Date: July 14, 2024
Bitfarms Ltd. (Nasdaq/TSX: BITF), a leading global Bitcoin (BTC) data center company, has recently announced a special shareholder meeting scheduled for October 29, 2024. This meeting has been called in response to a requisition made by Riot Platforms, Inc., a move that has garnered significant attention within the cryptocurrency community. Shareholders who are recorded as of September 26, 2024, will have the opportunity to cast their votes at the meeting.
The Background of the Requisition
Riot Platforms’ requisition has shaken up Bitfarms’ ongoing strategic alternatives review process, with potential implications for the future ownership of the company. The Board of Directors, guided by a special committee of independent directors, has carefully selected the meeting date after thorough evaluation and analysis.
Key Considerations and Recommendations
The special committee’s assessment included various factors, such as Riot’s lack of a clear business strategy for Bitfarms, the necessity for shareholders to have adequate time to review proposals, and the overall timeline for completing the strategic alternatives review process. Additionally, Riot’s concerns regarding corporate governance and the company’s Rights Plan have been central to the discussions leading up to the shareholder meeting.
Anticipated Decisions at the Shareholder Meeting
Shareholders attending the meeting will deliberate on the requisitioned matters and other pressing issues, including the ratification of the Rights Plan. Comprehensive information will be outlined in a management information circular distributed before the event, allowing shareholders to make informed decisions without the need for immediate action.
Bitfarms’ Approach to Stakeholder Engagement
Despite the challenges posed by Riot Platforms, Bitfarms remains committed to fostering constructive dialogue with all stakeholders. The company aims to mitigate unnecessary expenditures of its cash resources while navigating through this period of heightened scrutiny.
Strategic Advisors and Legal Counsel
In navigating this critical juncture, Bitfarms has enlisted the support of esteemed advisors and legal counsel, including Moelis & Company LLC, Skadden, Arps, Slate, Meagher & Flom LLP, Peterson McVicar LLP, and McMillan LLP. Innisfree M&A Incorporated and Laurel Hill Advisory Group are also providing strategic guidance and support as the company prepares for the shareholder meeting.
About Bitfarms Ltd.
Established in 2017, Bitfarms is a distinguished global Bitcoin mining company that operates multiple mining facilities across North and South America, with a focus on sustainable practices such as utilizing hydro-electric power and long-term power contracts. The company’s dedication to innovation and environmental responsibility has positioned it as a leader in the crypto mining industry.
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