Riot Platforms Expands Stock Pool, Amends Termination Terms for Investing.com
Riot Platforms, Inc. (NASDAQ:RIOT), the financial services company formerly known as Riot Blockchain (NASDAQ:), Inc., has announced several significant corporate changes, including an expansion of its share pool and amendments to its executive compensation plans, according to a recent SEC filing.
During its Annual Meeting on Monday, the company’s shareholders approved the Sixth Amendment to the 2019 Equity Bonus Plan, which adds 15,000,000 shares to the available stock for compensatory equity awards. This amendment, first recommended by the Board and the Compensation Committee on April 15, 2024, intends to grant equity grants to eligible directors, officers, employees, and service providers. These equity awards are subject to cash out based on service or performance criteria and may be redeemable under certain circumstances.
In addition, the company has reviewed the benefits of severance of its executives, effective Monday. The amendments, approved by the Board on the recommendation of the Compensation Committee, contain various details of the separation based on the type of separation of the executive from the company. These changes affect the Executive Chairman, CEO, EVP and CFO, EVP and Head of Business Development, and EVP and General Counsel.
In the event of termination for cause, no severance will be provided. Voluntary resignation without reasonable cause or without proper notice also results in termination benefits. However, severance packages including base salary and overtime bonuses may be offered for other types of severance, such as non-renewal of employment, termination without cause, or termination due to a change in control. Certain benefits depend on the circumstances of termination.
In addition, Riot Platforms adopted a new indemnification agreement for its directors and officers, citing inadequate liability insurance coverage under Nevada law. The company believes that these agreements are important to attract and retain the necessary talent.
In another significant development, Riot Platforms doubled its authorized shares of common stock from 340 million to 680 million, as stockholders approved an amendment to the Articles of Incorporation.
The filing also confirms the election of directors and the approval of Deloitte & Touche as an independent registered public accounting firm for the year ending December 31, 2024. In addition, shareholders approved the maximum compensation for the year ending December 31, 2023.
These corporate updates are based on SEC filings and reflect Riot Platforms’ efforts to align its strategic goals with its governance and compensation policies.
In other recent news, Riot Platforms, a cryptocurrency mining company, has been focusing on several important developments. Cantor Fitzgerald started coverage on Riot Platforms, citing its low mining costs, significant scale, and strong balance sheet.
The company also highlighted the company’s expected volume growth over the next 18 months, as well as its planned acquisition of BITF, which is expected to expand the company’s global presence.
Riot Platforms reported a drop in production in May 2024, but managed to increase its total hash rate to 14.7 exahashes per second (EH/s). The company also proposed a $950 million purchase of Bitfarms, a fellow crypto mining company, a move that received mixed reactions from analysts.
Riot Platforms has completed the first 100 MW building at the Corsicana Facility in Texas, adding to its mining capacity. The company expects to reach a mining hash rate of 31 EH/s by the end of 2024. Additionally, Riot Platforms has appointed Stephen Howell, CEO of ESS Metron, as Chief Operating Officer.
Analysts at Bernstein SocGen Group and JPMorgan have maintained positive ratings on Riot’s stock, while HC Wainwright analysts have expressed doubts about the completion of the Bitfarms deal. These are the latest developments in Riot Platforms’ journey into the Bitcoin mining industry.
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