What's Going On With Bitfarms Stock?

Bitfarms Ltd BITF shares are volatile Monday amid multiple developments. Here’s a look at what’s going on.

What To Know: Bitcoin BTC/USD data center company Bitfarms announced Monday that it appointed Ben Gagnon as CEO, effective immediately. Gagnon previously served as chief mining officer of Bitfarms.

“Over the last five years, Ben has been a vital member of the Bitfarms leadership team and has been instrumental in positioning the Company to drive organic growth and capture a greater share of the global demand for Bitcoin,” said Nicolas Bonta, chairman of Bitfarms.

“We look forward to leveraging Ben’s insights and experience as the Company works to expand and diversify the business into exciting and synergistic new areas, such as energy generation, heat recycling, energy trading and HPC (high performance computing) for AI (artificial intelligence).”

There are also new developments with Riot Platform Inc’s RIOT takeover attempt of Bitfarms. Riot on Monday announced the launch of ABetterBitfarms.com in connection with its nomination of three board members.

Bitfarms previously initiated a strategic alternatives review process following a takeover attempt from Riot. The special committee determined that Riot’s offer “significantly undervalued” the company.

Riot then announced that it built a significant stake in Bitfarms as it continued to pursue a potential takeover. Bitfarms responded with the adoption of a shareholder rights plan. Under the terms, if Riot or another entity builds a stake of more than 15% in the company between June 20 and Sept. 10, Bitfarms will issue new shares, diluting the stake of Riot or other entity pursuing a hostile takeover.

Riot has requisitioned a special meeting of Bitfarms shareholders and nominated John Delaney, Amy Freedman and Ralph Goehring for election to the Bitfarms board. The newly created website argues that it’s time to “fix Bitfarms’ broken corporate governance” and that new perspectives are needed to evaluate the best path forward for shareholders.

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BITF Price Action: Bitfarms shares are up about 16% over the last month. The stock touched $2.81 in early trading before pulling back. It was up 0.75% at $2.69 at the time of publication, according to Benzinga Pro.

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