Bitfarms CEO Fired Amid Lawsuit

Toronto-based Bitcoin mining firm Bitfarms has made headlines by abruptly dismissing CEO Geoffrey Morphy on Monday, following his lawsuit against the company demanding $27 million in damages for alleged breach of contract. The firing was effective immediately, marking a significant turn in the company’s management saga.

Morphy, who was promoted from President and COO to CEO in December 2022, had been slated to leave the company after a replacement was found. Despite initially agreeing to a smooth transition, the situation deteriorated sharply. On Friday, Morphy escalated matters by filing a Statement of Claim in the Superior Court of Ontario, seeking compensation not only for breach of contract but also for wrongful dismissal and punitive damages.

The company, however, has dismissed these claims as baseless and is prepared to defend itself vigorously. With Morphy’s abrupt departure, he also relinquishes his role as a company director. In response to the unfolding drama, Nicolas Bonta, co-founder and chairman of Bitfarms, has stepped in as interim President and CEO. The company aims to finalize its executive search and announce a permanent successor within the coming weeks.

This leadership upheaval has coincided with a postponement of Bitfarms’ first-quarter conference call, originally scheduled for today, now moved to May 15. This delay adds another layer of uncertainty to the company’s immediate future.

The impact of these events on Bitfarms is palpable in the financial markets. The firm’s stock price has taken a hit, currently trading at $1.55 on TradingView, reflecting a decline of over 10% following the news. This drop contributes to a year-to-date loss exceeding 50%, underscoring the significant market repercussions of the internal strife.

As the situation continues to unfold, the industry watches closely. Morphy has yet to respond publicly to the recent developments, leaving stakeholders and observers awaiting his next move in what promises to be a contentious legal battle.