Nicolas Bonta, co-founder and former chairman of Bitfarms, has stepped down from the company's board amid a hostile takeover bid from Riot Platforms.

This leadership change comes as Bitfarms faces increasing pressure from Riot Platforms, which has been attempting to acquire the company.

Riot currently owns approximately 70 million shares of Bitfarms, making it the largest shareholder, and has criticized the company's governance.

Riot's acquisition efforts began with a rejected offer of around $950 million earlier this year, followed by a subsequent withdrawal of their proposal due to perceived disengagement from Bitfarms' board.

Riot has nominated three independent directors to Bitfarms' board, with a special shareholder meeting scheduled for October 29 to vote on these changes.

Following Bonta's departure, Brian Howlett has been appointed as the new independent chairman, while Ben Gagnon has taken on the role of CEO and joined the board.

Liam Wilson is set to join Bitfarms as Chief Operating Officer on August 26, bringing valuable experience from his previous roles.

Bitfarms recently reported significant operating losses of $23.6 million, which included $46 million in accelerated depreciation on outdated mining equipment.

The company also experienced a 16% decline in total revenue for the second quarter, largely attributed to reduced block rewards following Bitcoin's halving in April.

Edie Hofmeister, chair of the Governance and Nominating Committee, emphasized the board's commitment to building a strong team to enhance shareholder value.

Riot Platforms has accused Bitfarms of poor corporate governance and failing to reach its potential, further intensifying the ongoing takeover battle.