Bitcoin Miner Bitfarms Appoints New CEO Amid Riot Takeover Bid

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Canadian Bitcoin mining company, Bitfarms has appointed Ben Gagnon as its new CEO as the company continues to tussle with its rival Riot Platforms, Ltd. This leadership change is strategic especially given that Bitfarms is currently in a battle for control with Riot Platforms.

Bitcoin Miner Bitfarms Appoints New CEO

Ben Gagnon who was earlier serving as the Chief Mining Officer of Bitfarms has taken over the position of the CEO of the company from the date. His promotion is part of a broader strategic shift as the firm looks to strengthen its defences against hostile takeover bids by Riot Platforms.

Gagnon joined Bitfarms as the Chief Mining Officer and has been in the Bitcoin mining industry for almost a decade. His appointment comes after the exit of the previous CEO Geoff Morphy in a rather sour note with a legal battle over his dismissal. 

Edie Hofmeister, Chair of Bitfarm’s Independent Search Committee, said that Gagnon is well-positioned to lead the company due to his input in the growth strategy of Bitfarms and his experience in the mining industry. The board feels that his leadership will be of immense value as Bitfarms looks to grow its operations, especially in the United States, and pursue new ventures in high-performance computing and AI.

Escalating Rivalry with Riot Platforms

The context behind this leadership change is a rivalry with Riot Platforms, which has become more aggressive with Riot recently starting an online campaign against Bitfarms’ management and strategy. In early June, Riot dared to launch a hostile acquisition attempt, providing around $950 million in total equity value, which Bitfarms turned down.

Bitfarms’ counter-measure to the takeover threat was to implement a share buy-back plan which forced Riot into a rethink and demanded that the board of directors of Bitfarms be reshuffled. The two have been locked in a battle for control and direction of Bitfarms’ business with Riot now seeking to effect changes in the board to pave way for a merger. 

The two companies’ shares in the latest trading session dropped 3% and 0.47%, with Riot trading at $9.35, and Bitfarms at $2.66. The market’s response to these events has been keenly observed, with investors remaining somewhat apprehensive due to the ongoing corporate governance issues and the wider impact on the bitcoin mining industry.

Concurrently, the firms’ focus under Gagnon’s leadership will include expanding its mining operations and exploring synergistic opportunities in areas like energy generation and high-performance computing for AI. These initiatives are part of a broader vision to diversify the company’s business and enhance its global competitiveness.

Read Also: VanEck Files Spot Ethereum ETF S-1 Amendment

The post Bitcoin Miner Bitfarms Appoints New CEO Amid Riot Takeover Bid appeared first on CoinGape.


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