Bitfarms’ outgoing CEO filed a claim in the Superior Court of Ontario, alleging a contract breach and seeking damages.
Bitfarms, a leading global Bitcoin mining firm, has made headlines with the termination of its interim president and CEO, Geoffrey Morphy, amid an ongoing $27 million lawsuit against the company over breach of contract, among other issues.
Morphy, appointed in late 2022, was announced to leave the Toronto-based company on March 25, pending a search for his replacement. However, Bitfarms stated that Morphy has been terminated immediately and no longer serves as the company’s director.
Legal Action Filed Against Bitfarms.
The saga unfolded as Morphy filed a claim against Bitfarms in the Superior Court of Ontario on Friday, alleging breach of contract, wrongful dismissal, and seeking damages. The firm believes the claims are meritless and intends to defend itself.
Bitfarms’ chairman and co-founder Nicolas Bonta has assumed the role of interim president and CEO as the company continues its search for a permanent replacement. Bitfarms stated that the search is almost completed, with plans to appoint a new CEO in a few weeks.
Bitcoin mining firms like Bitfarms are essential to the crypto ecosystem’s infrastructure. They enable the validation and processing of transactions on the blockchain network, ensuring its smooth operation and integrity.
Bitcoin Mining Sector Challenges.
In addition, the Bitcoin mining sector is encountering numerous challenges, including higher energy costs, intensifying competitions, and the outcome of a significant software-code update in April, commonly known as the “halving,” which substantially reduced its primary revenue stream.
Meanwhile, in the first quarter, Bitcoin prices rapidly increased as new coin production crashed due to increased mining difficulty, which measures the computing power needed to create Bitcoin tokens.
The firm stated that its recent upgrade combines a high-efficiency fleet with cost-effective practices to strengthen the farm. It also elevates its capital-efficient fleet, aiming for a modest increase to 12.0 EH/s by Q2 2024.
Bitfarms noted that it cuts miner and energy costs, enhances fleet energy efficiency, and offers advantageous pricing flexibility.
Furthermore, Bitfarms promotes hydroelectricity and locally sourced natural gas to maintain low costs and environmental impact while securing 2% of the Bitcoin network.
