Riot Platforms Expands Stock Pool and Updates Severance Terms
**Riot Platforms, Inc.**—a finance services company previously known as Riot Blockchain, Inc.—has announced several important changes. These changes include expanding its stock pool and updating the severance terms for its top executives. These updates affect the Executive Chairman, CEO, EVP and CFO, EVP and Head of Corporate Development, and EVP and General Counsel.
Expansion of Stock Pool
In their Annual Meeting held on Monday, the company’s shareholders approved the Sixth Amendment to the 2019 Equity Incentive Plan. This amendment adds 15,000,000 shares to the stock pool. The main purpose is to provide equity grants to eligible directors, officers, employees, and service providers. These equity awards will be based on service or performance and can be reclaimed under specific conditions.
Updated Severance Benefits
Riot Platforms has also updated its severance benefits for executive officers, effective Monday. These updates were recommended by the Board and Compensation Committee. The details vary based on the nature of an executive's departure from the company:
- For termination with cause or voluntary resignations without valid reasons, no severance will be given.
- For other types of separations, such as termination without cause or due to change-in-control, severance benefits like base salary and prorated bonuses may be offered. The benefits will depend on the specific circumstances surrounding the termination.
Indemnification Agreement
To attract and retain top talent, Riot Platforms has approved a new indemnification agreement for its directors and officers. This is to cover them in case Nevada's liability insurance laws fall short.
Doubling Authorized Shares
Significantly, Riot Platforms has doubled its authorized shares of common stock. The number of shares went from 340 million to 680 million. This change was approved by the stockholders through an amendment to the Articles of Incorporation.
Election of Directors and Other Approvals
The filing also confirms the election of directors and the ratification of Deloitte & Touche as the company’s independent public accounting firm for the year ending December 31, 2024. Additionally, the shareholders have approved the executive compensation for the year ended December 31, 2023.
Recent Developments in Cryptocurrency Mining
In other news, Cantor Fitzgerald has initiated coverage of Riot Platforms, praising its low cost of mining, significant scale, and strong balance sheet.
- The company is expected to grow organically over the next 18 months.
- Riot Platforms has proposed a $950 million acquisition of Bitfarms, which has received mixed reactions from analysts.
The company reported a decrease in production in May 2024 but managed to increase its total deployed hash rate to 14.7 exahashes per second (EH/s). Riot Platforms completed the first 100 MW building at the Corsicana Facility in Texas and expects to reach a self-mining hash rate capacity of 31 EH/s by the end of 2024.
New COO Appointment
Riot Platforms has appointed Stephen Howell, CEO of ESS Metron, as the new Chief Operating Officer.
Analysts' Opinions
- Analysts from Bernstein SocGen Group and JPMorgan maintain positive ratings on Riot’s stock.
- H.C. Wainwright analysts are skeptical about the completion of the Bitfarms deal.
These updates reflect Riot Platforms' efforts to align its strategic objectives with its governance and compensation policies, positioning the company for future growth in the Bitcoin mining industry.
