Bitfarms appoints new board member in latest response to Riot's takeover attempt

Bitfarms has appointed new independent director Fanny Philip to the Canadian firm's board in its latest response to avert a takeover by rival bitcoin miner Riot Platforms.

Bitfarms announced the company’s board had unanimously approved the appointment on Thursday afternoon, effective immediately. Bitfarms' board now comprises five directors, four of whom are independent, according to the firm. 

Philip brings expertise in blockchain technology and extensive experience as a finance executive with a background in auditing, public company reporting and mergers and acquisitions, Bitfarms said.

“Fanny’s appointment to the board follows a comprehensive search to identify a highly qualified director that enhances the board’s skill set, and marks significant progress on our commitment to refresh the board with independent candidates,” said Edie Hofmeister, Chair of Bitfarms’ Governance and Nominating Committee.

“In addition to her outstanding audit background, Fanny’s deep knowledge of the North American and European energy sectors and extensive experience across the fields of digital assets, mining and AI will be invaluable as we continue to drive significant organic growth and capture a greater share of the global demand for bitcoin,” Hofmeister added.

Philip is also the former COO of another bitcoin mining firm, the Toronto stock exchange-listed SATO Technologies.

“Bitfarms has tremendous momentum underway, and I am excited to leverage my knowledge of capital markets and the digital asset industry to contribute to the company’s continued success and help capitalize on the significant opportunities ahead,” Philip said.

Bitfarms takeover saga

On Monday, Riot formally requisitioned a special meeting to restructure Bitfarms' Board, aiming to remove Chairman and Interim CEO Nicolas Bonta and director Andrés Finkielsztain and fill the vacancy left by co-founder Emiliano Grodzki. Philip's appointment may also now impact that process.

Riot said it was ready to engage with a reconstituted board over the potential acquisition of Bitfarms. However, it withdrew its previous offer to acquire the company for $2.30 per share "given the current board's lack of meaningful engagement."

Riot, whose $950 million attempt to acquire the rival miner in April was thwarted, has since become the largest shareholder in Bitfarms with 60 million shares, 14.9% of the company. Bitfarms share price closed down 2.3% on Thursday at $2.59, according to TradingView. The stock has declined 22% year-to-date.

Riot has proposed three independent candidates for the Bitfarms board: John Delaney, Amy Freedman and Ralph Goehring, who bring expertise in public affairs, corporate governance and financial management.

Bitfarms has 21 days to schedule the meeting from June 24.