Riot Platforms, Inc. has issued a waiver and irrevocable proxy concerning its agreement with Bitfarms Ltd., altering its rights and voting power over the company's shares.
On April 7, 2025, Riot Platforms, Inc. (NASDAQ: RIOT) took a significant step by issuing a waiver and irrevocable proxy as part of its ongoing relationship with Bitfarms Ltd. (NASDAQ/TSX: BITF), according to riotplatforms.com. This move is in accordance with Canadian National Instrument 62-103 and 62-104, focusing on early warning systems and take-over bid issues.
The waiver and proxy delivered on April 7, 2025, relinquished several rights under the September 2024 Settlement Agreement with Bitfarms. These rights included the appointment and removal of a Riot nominee on the Bitfarms Board and certain pre-emptive rights. The waiver effectively releases Bitfarms from these obligations while granting them an irrevocable proxy to vote on Riot's behalf for securities representing over 9.9% of voting power.
Despite these changes, Riot retains voting power over approximately 54,810,793 shares, maintaining a 9.9% voting interest. Riot continues to hold 90,110,912 common shares, equating to about 16.3% of Bitfarms' total issued shares. This proxy will terminate once Riot's voting power falls to 9.9% or lower.
Riot Platforms plans to continuously review its investment strategy with Bitfarms. Depending on various factors such as market conditions, company performance, and strategic opportunities, Riot may adjust its holdings in Bitfarms. This could involve buying or selling shares or exploring strategic proposals in line with the terms of the Settlement Agreement.
Based in Castle Rock, Colorado, Riot Platforms is a prominent player in the Bitcoin mining and digital infrastructure sector. The company aims to lead in Bitcoin-driven infrastructure, with operations in Texas and Colorado.
Meanwhile, the Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Bitfarms. This investigation stems from allegations that Bitfarms may have issued materially misleading business information to the investing public.
On December 9, 2024, after the market closed, Bitfarms announced a restatement of previously issued financial statements for the fiscal years ended December 31, 2023, and 2022, to correct a material error in the classification of proceeds derived from the sale of digital assets. Bitfarms further announced that it is also restating its financials to adjust for an error in the accounting for the redemption of warrants in 2023. Following this announcement, Bitfarms' stock fell 6% on December 10, 2024.
The Rosen Law Firm is preparing a class action seeking recovery of investor losses. Investors who purchased Bitfarms securities may be entitled to compensation without payment of any out-of-pocket fees or costs through a contingency fee arrangement. To join the prospective class action, interested parties can visit the Rosen Law Firm's website or contact them directly.
In addition to these legal challenges, Bitfarms Ltd. Director Brian Howlett sold 32,001 shares of the company's stock on Friday, April 4, 2025. The shares were sold at an average price of C$1.16, for a total value of C$37,121.16.
On April 10, 2025, BITF traded down C$0.13, hitting C$1.09. The company had a trading volume of 1,678,982 shares, compared to its average volume of 2,451,350. Bitfarms Ltd. has a twelve-month low of C$0.96 and a twelve-month high of C$4.49. The firm has a market capitalization of C$382.28 million, a PE ratio of -2.45, and a beta of 3.20. The company also has a debt-to-equity ratio of 4.68, a quick ratio of 0.63, and a current ratio of 3.70.
Wall Street analysts have also weighed in on Bitfarms. ATB Capital dropped their price objective on shares of Bitfarms from C$6.50 to C$3.75 and set an "outperform" rating for the company in a report on March 28, 2025.
Bitfarms Ltd. engages in the mining of cryptocurrency coins and tokens in Canada, the United States, Paraguay, and Argentina. It owns and operates server farms that primarily validate transactions on the Bitcoin Blockchain and earn cryptocurrency from block rewards and transaction fees. The company also provides electrician services to commercial and residential customers in Quebec, Canada.
As the situation unfolds, both Riot Platforms and Bitfarms face critical decisions that could impact their future in the rapidly evolving cryptocurrency market. Investors and stakeholders will be watching closely as these developments progress.
