Board changes at Bitfarms amid revenue drop and Riot’s hostile takeover efforts

Bitfarms co-founder and chairman Nicolas Bonta is stepping down from the board immediately amid the ongoing fight against Riot Platforms‘ hostile takeover bid, according to an Aug. 13 statement.

Bonta is one of three board members Riot aims to replace in the upcoming October shareholder vote.

Leadership change

In response to Bonta’s departure, Brian Howlett, the lead director, will assume the role of independent chairman. Ben Gagnon will step in as the new CEO and join the board.

Additionally, Liam Wilson will become the Chief Operating Officer (COO) on Aug. 26.

Edie Hofmeister, Chair of the Governance and Nominating Committee, emphasized that Bitfarms’ Board is dedicated to building the right team to implement its strategic plan and create long-term value for its shareholders. He added:

“The Bitfarms Board is focused on ensuring the Company has the right team to oversee and implement the Company’s strategic plan to deliver value in the near- and long-term.”

Bitfarms’ leadership changes come at a crucial time, as the company faces aggressive acquisition attempts from Riot.

In April, Riot first tried to acquire Bitfarms for about $950 million, but the offer was rejected because it undervalued the company.

Since then, Riot has become a significant Bitfarms shareholder through significant share acquisitions, reaching 15.9%. It has also criticized Bitfarms’ governance and called for the removal of the company’s board, which it claims prioritized the directors’ interests over those of shareholders.

Revenue declined in Q2

These leadership changes came less than a week after the Bitcoin miners revealed that their total revenue had dropped to $42 million, a 16% decrease from the first quarter.

The company attributed the decline to reduced block rewards after Bitcoin’s halving event in April. This year’s event slashed miners’ block rewards to 3.125 BTC per block, down from 6.25 BTC.

Additionally, Bitfarms reported operating losses of $23.6 million, which included $46 million in accelerated depreciation on outdated mining equipment.

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