In a surprising turn of events, Bitfarms Ltd., a prominent cryptocurrency mining company (website) listed on Nasdaq and Toronto TSX, announced that it terminated its interim President and CEO, Geoffrey Morphy, following his lawsuit against the company. The legal dispute centers on claims of breach of contract and wrongful dismissal, with Morphy seeking $27 million in damages, including aggravated and punitive damages.
The lawsuit was filed on May 10 in the Superior Court of Ontario, just days before Bitfarms publicly announced Morphy’s termination. Initially set to continue in his role until a suitable replacement was found, Morphy’s departure has been expedited due to the contentious legal developments. Morphy, who had been with Bitfarms since 2020 and assumed the top executive role in late 2022, has also stepped down from his directorial position at the company.
Nicolas Bonta, co-founder and chair of Bitfarms, has assumed the role of interim president and CEO. The company continues its search for a new CEO. Bitfarms deems the claims as baseless and vowing to defend itself vigorously in court.
This leadership upheaval occurs amidst significant operational developments within Bitfarms. The company, founded in 2017, operates 11 Bitcoin mining facilities across the United States, Canada, Paraguay, and Argentina. Bitfarms disclosed plans to invest approximately $240 million to upgrade its mining equipment following the Bitcoin halving event in April.
Despite these strategic expansions, Bitfarms has faced financial volatility, as reflected in its recent stock performance. Since the announcement of Morphy’s initial planned departure on March 25, Bitfarms‘ shares have dropped by about 29%, trading at $1.61 on Nasdaq. The company is also poised to announce its first-quarter earnings for 2024 on May 15.
