Cryptocurrency Mining Company Bitfarms CEO Steps Down Amidst $27 Million Lawsuit
Summary:
Geoffrey Morphy, former President and CEO of Bitfarms, has stepped down in the wake of a $27 million lawsuit filed against the company alleging contract breach and wrongful dismissal. In response, Bitfarms has dismissed these claims as baseless and announced that Co-founder Nicolas Bonta will serve as interim President and CEO. The bitcoin mining company, with facilities in U.S., Canada, Paraguay, and Argentina, also plans to invest $240 million in equipment upgrades.
Bitfarms, a cryptocurrency mining company, recently announced the immediate departure of Geoffrey Morphy, its erstwhile president and CEO, following a lawsuit filed by him against the company in Canada. The announcement to terminate Morphy's position had come earlier than the original schedule, which planned to keep him at the helm till the time a successor was recruited. Morphy allegedly filed a lawsuit against Bitfarms on May 10 in the Ontario Superior Court, making claims for “breach of contract, wrongful dismissal and aggravated and punitive damages” estimating $27 million. Bitfarms, however, refutes these charges and is set to defend its stand. In the interim, the company has placed Nicolas Bonta, its Chairman and Co-Founder, as the acting President and CEO until Morphy’s successor is finalized. Bitfarms had publicly divulged its intent in March to find a substitute for Morphy, who had been associated with them since 2020. Bitfarms expects to announce a new CEO in the forthcoming weeks. There's been no comment from Morphy yet and all attempts to reach him have been unfruitful. Bitfarms, established in 2017, operates 11 Bitcoin (BTC) mining plants across the United States, Canada, Paraguay, and Argentina. An investment of around $240 million has been planned by the company for refreshing their mining equipment after the BTC halving event, potentially elevating its hash rate capacity to 21 exahashes per second. The company's earnings in April included 269 BTC in mining rewards and transaction fees; their first-quarter earnings for 2024 are due to be announced on May 15. At the time of reporting, Bitfarms' stock (BITF) was listed on the Nasdaq at $1.61, marking a decline of nearly 29% since March 25.
Published At
5/13/2024 7:00:00 PM
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