The Colorado-headquartered company has criticized its rival, Bitfarms, for their recent decision, claiming it demonstrates a disregard for good corporate governance. They have vowed to continue addressing what they perceive as serious governance issues at Bitfarms and ensure that shareholders have a say in the company’s direction. Riot Platforms CEO Jason Les expressed dissatisfaction with Bitfarms’ recent actions, particularly the board’s decision to remove the company’s co-founder, Emiliano Grodzki, less than two weeks ago. Bitfarms defended this move by stating that the board unanimously approved a shareholder rights plan to protect the integrity of its strategic alternatives review process.
They claimed that the plan serves the best interests of all Bitfarms’ shareholders. Within the Rights Plan, Bitfarms intends to issue additional shares to dilute an investor’s stake if an entity seeks to hold 15% of the firm’s shares.