Riot Platforms, Inc. (NASDAQ:RIOT), a finance services company previously known as Riot Blockchain (NASDAQ:RIOT), Inc., has announced several significant corporate changes, including an expansion of its stock pool and amendments to executive compensation arrangements, according to a recent SEC filing.
During its Annual Meeting on Monday, the company's stockholders approved the Sixth Amendment to the 2019 Equity Incentive Plan, which adds 15,000,000 shares to the stock pool available for compensatory equity awards. This amendment, first recommended by the Board and Compensation Committee on April 15, 2024, aims to provide equity grants to eligible directors, officers, employees, and service providers. These equity awards are subject to vesting based on service or performance criteria and may be clawed back under certain conditions.
Moreover, the company has revised the severance benefits for its executive officers, effective Monday. The amendments, approved by the Board upon the Compensation Committee's recommendation, detail varying severance packages based on the nature of an executive's separation from the company. These changes affect the Executive Chairman, CEO, EVP and CFO, EVP and Head of Corporate Development, and EVP and General Counsel.
In the event of a termination for cause, no severance will be provided. Voluntary resignations without good reason or without proper notice also result in no severance benefits. Still, severance packages including base salary and prorated bonuses may be offered for other types of separations, such as non-renewal of employment term, termination without cause, or termination due to a change-in-control. The specific benefits depend on the circumstances of the termination.
Furthermore, Riot Platforms has adopted a new indemnification agreement for its directors and officers, citing inadequate liability insurance coverage under Nevada law. The company believes these agreements are essential for attracting and retaining the necessary talent.
In another significant development, Riot Platforms has 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 ratification of Deloitte & Touche as the company's independent registered public accounting firm for the year ending December 31, 2024. Moreover, the stockholders have approved the executive compensation for the year ended December 31, 2023.
These corporate updates are based on the SEC filing and reflect Riot Platforms' efforts to align its strategic objectives with its governance and compensation policies.
In other recent news, Riot Platforms, a cryptocurrency mining company, has been the focus of several significant developments. Cantor Fitzgerald initiated coverage on Riot Platforms, citing its low cost of mining, significant scale, and a strong balance sheet.
The firm also highlighted the company's expected organic capacity growth in the next 18 months, as well as its planned acquisition of BITF, which is anticipated to increase the company's international presence.
Riot Platforms reported a decrease in Bitcoin production in May 2024, but managed to increase its total deployed hash rate to 14.7 exahashes per second (EH/s). The company has also proposed a $950 million acquisition of Bitfarms, a fellow crypto mining company, a move that has received mixed reactions from analysts.
Riot Platforms has completed the first 100 MW building at the Corsicana Facility in Texas, contributing to its mining capacity. The company anticipates reaching a self-mining hash rate capacity 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 from Bernstein SocGen Group and JPMorgan (NYSE:JPM) have maintained positive ratings on Riot's stock, while H.C. Wainwright analysts expressed skepticism about the completion of the Bitfarms deal. These are the recent developments in Riot Platforms' journey in the Bitcoin mining industry.
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