Bitfarms, a major Bitcoin mining company, has reportedly named Ben Gagnon as its new Chief Executive Officer (CEO).
The announcement, made on Monday, comes at a crucial time as the company faces a dispute with its largest shareholder, Riot Platforms, and undergoes a strategic review.
This appointment follows a turbulent period in Bitfarms’ leadership. The company’s previous plans for a smooth transition were disrupted when former CEO Geoff Morphy, whose departure was initially announced in March 2024, had his termination accelerated in May. Notably, the full termination came shortly after Morphy filed a lawsuit claiming $27 million in damages for unlawful dismissal, a claim he maintains is valid despite the company’s denial.
Gagnon’s promotion is seen as a potential turning point for Bitfarms’ investors, given his previous executive experience and intimate knowledge of the company’s operations. In a recent social media post, Bitfarms highlighted Gagnon’s extensive work across all company departments and his enthusiasm for this new role. The company added that Gagnon has outlined plans to expand and diversify Bitfarms’ portfolio.
The leadership change occurs against a backdrop of financial challenges for Bitfarms. The company reported a gross loss of $22 million in 2023, contrasting with a $11 million gross profit in 2022, alongside operational losses of $72 million in 2023.
Adding to these challenges, Bitfarms is currently engaged in a conflict with Riot Platforms, its largest shareholder. Riot, aiming to strengthen its position in Bitcoin mining, offered to acquire Bitfarms for $950 million. However, Bitfarms rejected this offer, deeming it undervalued and not in the best interest of its shareholders. Following this rejection, Riot withdrew its offer and is now pushing for changes in Bitfarms’ leadership structure.
Gagnon’s appointment as CEO marks a significant development in this ongoing corporate saga, with stakeholders watching closely to see how his leadership will navigate Bitfarms through its current challenges and strategic review.
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