09:17 AM EDT, 09/04/2024 (MT Newswires) -- Bitfarms ( BITF ) said Wednesday that activist investor Riot Platforms' ( RIOT ) upcoming special meeting is an attempt "to acquire Bitfarms ( BITF ) at a discounted price" and not about corporate governance, in response to claims against the bitcoin company's alleged mismanagement.

Riot had declined to constructively engage with Bitfarms ( BITF ) and has instead resorted to public attacks, Bitfarms ( BITF ) said. In an open letter released Tuesday, Riot criticized Bitfarms' ( BITF ) governance, especially the handling of its CEO succession and the high premium of the proposed Stronghold acquisition, urging shareholders to support their proposed board changes.

"The Bitfarms ( BITF ) team is best-in-class, comprising the right mix of skills and experience to effectively oversee the company's strategic plan," Bitfarms ( BITF ) said, adding that it is "not clear" how the activist's nominees would enhance the board.

The proposed Stronghold acquisition is consistent with plans to diversify access to power and reorient its energy portfolio towards the US, Bitfarms ( BITF ) said.

Bitfarms ( BITF ) shares were down 3.1% in recent Wednesday premarket activity, while Riot shares were fallilng 1.2%.

Price: 1.9000, Change: -0.06, Percent Change: -3.06