Bitfarms founder Nicolas Bonta resigns

Nicolas Bonta is the founder of the well-known Bitcoin mining company Bitfarms. Now he must resign because of pressure from competitor Riot Farms. Riot owns 16.9 percent of Bitfarms shares and had pushed for a vote on the founder's stay on the board of directors.

According to the company, Brian Howlett will take over as chairman effective immediately. In addition, Bitfarms' recently appointed CEO, Ben Gagnon, is joining the board as Bonta departs.

Riot had previously criticized Bitfarms' management, accusing the company of "poor management and inability to realize its full potential." In the past, Riot Farms already tried to take over the mining provider.

In May, during a reorganization, Geoffrey Morphy was fired as the company's CEO, after which he filed a $27 million lawsuit. According to Bitfarms, this case is unfounded. The change in power points to a broader power conflict with rival Riot Farms and could herald a completely new direction for the mining company.