Bitfarms accused Riot of trying to acquire Bitfarms at a low price, claiming that Riot was using these management changes to cover up a takeover attempt.

In a press release published on September 4, Bitfarms announced that it opposes Riot Platforms’ planned reforms to the company’s board of directors. Bitfarms claimed that Riot made this move to serve the interests of Riot’s shareholders and to acquire Bitfarms at a discounted price.

Stating that Riot Platforms presented the initiative to change the company’s current board of directors on the grounds of “correcting corrupt governance”, Bitfarms stated that these changes were actually intended to provide an advantage to Riot’s shareholders.

Riot Platforms is the largest shareholder of Bitfarms, with a share of 19.9%. Riot proposes to replace the board members at the extraordinary general assembly meeting to be held on October 29.

Riot’s proposal calls for Amy Freedman and John Delaney to be brought to the board, providing “fresh perspectives” to increase shareholder value. Riot stated that Bitfarms took “defensive” steps to defend the current board members and that these steps were intended to protect the current management rather than strengthen the company’s governance structure.

Bitfarms argued that Riot’s governance changes negatively affected the company’s strategic plans and recent leadership changes. The company stated that its $175 million acquisition of Stronghold Digital Mining is in line with its strategy to diversify energy sources and expand into the US market.

Bitfarms stated that this agreement aims to increase its capacity to over 950 MW by 2025. Bitfarms emphasized that this strategic step is critical to achieving long-term growth and sustainability goals.

In its statement published on September 3, Riot Platforms expressed its concerns about the Stronghold agreement and criticized Bitfarms’ recent governance moves.

While Riot evaluated Bitfarms’ governance strategies as aimed at protecting current board members, it stated that these moves were aimed at defending the current management rather than contributing to the company’s governance structure.

Riot also advocated the appointment of Amy Freedman and John Delaney to the board of directors, demanding that innovative and effective solutions be offered in the management of the company.

These developments once again revealed how deep the competition and strategic differences between Bitfarms and Riot Platforms are.

This dispute, which has sparked discussions on governance and acquisition strategies in the crypto mining industry, is being closely followed by other players and investors in the industry. This tension between companies is considered an important development that will shape the future direction and possible effects of the sector.