Bitfarms names new CEO just a month after rejecting Riot Platforms’ takeover bid

Bitcoin mining startup Bitfarms has appointed insider Ben Gagnon as its new Chief Executive Officer to steer the company through a strategic review and an ongoing dispute with its largest shareholder and rival, Riot Platforms.

The news comes just a month after Bitfarms rejected Riot’s offer and instead bolstered its board by appointing Fanny Philip, aiming to fortify its standing amidst the takeover bid.

Gagnon’s ascension to CEO comes after Bitfarms’ initial plans for a seamless leadership transition hit a snag. Former CEO Geoff Morphy, whose departure was announced in March, was initially set to remain in his role during the search for a successor. However, Morphy’s tenure was abruptly cut short in May, following his lawsuit against the company seeking $27 million in damages for breach of contract and wrongful dismissal—claims Bitfarms has firmly denied as baseless, Reuters reported.

Gagnon, formerly Bitfarms’ Chief Mining Officer, brings a wealth of experience to his new role. He has previously served as CEO and founded two Bitcoin mining operations before joining Bitfarms in 2019. His extensive involvement across various departments within Bitfarms is expected to reassure investors and stabilize the company during this period of uncertainty.

The strategic review, initiated by Bitfarms, coincides with ongoing tensions with Riot Platforms. Bitfarms rejected Riot’s $950 million acquisition bid, deeming it undervalued. In response, Bitfarms adopted a “poison pill” strategy to thwart the hostile takeover. Despite withdrawing the bid, Riot continues to seek influence within Bitfarms, pushing for three board seats and expressing readiness to negotiate with the newly structured board regarding potential transactions.

As Gagnon steps into his new role, his leadership will be crucial in steering Bitfarms through these challenging times and addressing the concerns of its investors and stakeholders.