Bitfarms names new CEO to guide it through strategic review

(Reuters) – miner Bitfarms has appointed insider Ben Gagnon as its new chief executive officer to oversee a strategic review and navigate a dispute with its biggest shareholder, Riot Platforms (NASDAQ:).

Gagnon’s promotion comes months after Bitfarms’ plans for a smooth leadership transition ran into difficulties. Former CEO Geoff Morphy, whose departure was announced in March, was to remain in his role while a search for a replacement was conducted.

But the company accelerated his termination in May, days after he filed a lawsuit claiming $27 million in damages for breach of contract and wrongful dismissal. Bitfarms said the claims were “without merit”.

Gagnon’s appointment could help reassure investors of Bitfarms as he has previous experience as CEO. Most recently Bitfarms’ chief mining officer, Gagnon founded and operated two bitcoin miners prior to joining the company in 2019.

He has also worked intimately with every department in Bitfarms, the company said on Monday.

The company has been reviewing its strategic alternatives and is at loggerheads with its biggest shareholder Riot.

Bitfarms rebuffed Riot’s $950 million offer saying it undervalued the company and adopted a “poison pill” to fend off a hostile takeover.

Riot withdrew the offer but is seeking three board seats at Bitfarms. It has said it is “ready to engage” with the company’s reconstituted board about a potential transaction.