Riot Platforms is concerned about changes to the Bitfarms board before the crucial October meeting

Riot Platforms, Bitfarms' largest shareholder, has issued an open letter to Bitfarms shareholders calling for further changes to the company's board of directors.

The upcoming shareholder meeting is scheduled for October 29. During the meeting, Riot is expected to make improvements to improve governance and value for all shareholders.

BitFarms is a publicly traded company primarily based in Canada that specializes in the cryptocurrency industry, specializing in Bitcoin (BTC) mining.

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Riot shares and actions

Riot holds a 19.9% ​​stake in the BTC mining firm and has acknowledged recent changes to its board, including the departure of co-founders Emiliano Grodzki and Nicolas Bonta.

In the open letter, Riot argued that these changes were inadequate and in response to public pressure, and proposed that two independent directors, Amy Friedman and John Delaney, be appointed.

The two new independent directors proposed will replace Bitfarm board members Andreas Finkelstein and Fanny Philipp.

Related: Crypto Biz: Riot Adds Bitfarms Takeover Strategy

Warning for Bitfarms

In the letter, Riot cautions Bitfarms against taking any further steps that could dislodge the existing board before the October 29 meeting.

Riot Bitfarms expressed that it “sincerely” hopes that shareholders will “have their own opinion” and that it does not want to “harm investors” or “take any action that may unfairly gain an unfair advantage over the director's election.”

“The BitFarms Board must not enter into any financial transactions prior to the conclusion of the Special Meeting. Riot is deeply concerned that any transaction by the current BitFarms Board would be penalizing all BitFarms shareholders when there are other, more attractive financing options.”

If Riot pushes the BitFarms board to take “any such action to further strengthen itself at the expense of shareholders”, it warned that existing directors will be “personally liable”.

Related: Riot Platforms Raises Bitfarms Stake With $2.28M Stock Purchase

Bitfarm board shaking

In the year On August 13, BitFarms announced the appointment of CEO Ben Gannon as a new board member in an attempt to take over the Riot platform.

Bonta, who served as Bitfarms' interim president and CEO, stepped into the role in May, and Gagnon “decided to step down” from the board upon his arrival.

A BitFarms spokesperson told Cointelegraph at the time that the appointment of a board CEO was “in line with standards in public companies.”

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