Bitfarms' CEO to Depart Immediately Due to Lawsuit

Discover the latest news on Bitfarms as Nicolas Bonta takes over as interim President and CEO amidst a $27 million lawsuit filed by Geoffrey Morphy.

May 15, 2024 - 12:15
May 14, 2024 - 12:36
Bitfarms' CEO to Depart Immediately Due to Lawsuit
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Nicolas Bonta, co-founder and chair of Bitfarms, is set to assume the role of interim president and CEO following a $27 million lawsuit filed against the mining firm by Geoffrey Morphy. Geoffrey Morphy, the former President and CEO of Bitfarms, will step down immediately after initiating legal proceedings against the company in Canada.

In a statement on May 13, Bitfarms announced the termination of Morphy as CEO and president, deviating from the previously outlined plan for him to continue leading until a replacement was found. The mining firm revealed that Morphy filed the lawsuit in the Superior Court of Ontario on May 10, citing "breach of contract, wrongful dismissal and aggravated and punitive damages."

Bitfarms responded, stating:

"The Company believes the claims are without merit and intends to defend itself vigorously." 

They appointed Nicolas Bonta, the Chairman and Co-Founder, as interim President and Chief Executive Officer until a new CEO is appointed.

Bitfarms had announced in March its intention to search for a replacement for Morphy, who had been with the company since 2020. The firm plans to name a new CEO "in the next several weeks."

Established in 2017, Bitfarms operates 11 Bitcoin mining facilities across the United States, Canada, Paraguay, and Argentina. In April, the company revealed plans to invest around $240 million to upgrade its mining equipment post the BTC halving event, potentially boosting its hash rate capacity to 21 exahashes per second.

Bitfarms reported earning 269 BTC in mining rewards and transaction fees in April, with first-quarter 2024 earnings set to be disclosed on May 15. As of the publication date, Bitfarms' stock (BITF) on the Nasdaq traded at $1.61, marking a decline of approximately 29% since March 25.