According to a statement on August 13, Bitfirm co-founder and chairman Nicholas Bonta will step down from his position on the company’s board of directors effective immediately as the company continues to fight a hostile takeover bid by Riot Platforms.
Bonta is one of three directors that Riot plans to replace in a shareholder vote scheduled for October.
Changes in Leadership
Following Bonta's retirement, lead director Brian Howlett will become independent chairman, and Ben Gagnon will become CEO and join the board of directors.
In addition, Liam Wilson will take on the role of Chief Operating Officer (COO) on August 26th.
Eddie Hofmeister, chairman of the Governance and Nominating Committee, emphasized that Bitfirm's board is committed to building the right team to execute its strategic plan and create long-term value for shareholders.
“Bitfarm's board of directors is focused on ensuring the company has the right team to oversee and execute on our strategic plan to deliver value in the short and long term.”
Bitfarm's management changes come at a critical time as the company faces an aggressive takeover attempt from Riot.
Riot tried to acquire Bitfarms for around $950 million in April, but the offer was rejected as it undervalued the company.
Since then, Riot has become Bitfarm's largest shareholder through a large share acquisition, taking its stake to 15.9%, and has also criticized Bitfarm's governance, calling for the removal of the board of directors for allegedly prioritizing director interests over those of shareholders.
Second quarter revenue declines
These management changes come less than a week after the bitcoin miner revealed that its total revenue fell 16% from the first quarter to $42 million.
The company attributed the drop to a reduction in block rewards following the Bitcoin halving event in April, which saw miners' block rewards drop dramatically from 6.25 BTC to 3.125 BTC per block during this year's event.
Additionally, BitFarms reported an operating loss of $23.6 million, which included $46 million in accelerated depreciation charges on outdated mining equipment.
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