Bitfarms announced the termination of Geoffrey Morphy as its interim President and CEO.
This decision came shortly after Morphy filed a lawsuit against the company, seeking $27 million in damages for claims including breach of contract and wrongful dismissal.
Bitfarms Shares Fall Over 6%
The company has dismissed Morphy’s claims as baseless and has vowed to defend itself vigorously in the Superior Court of Ontario.
Morphy’s termination marks a tumultuous period for Bitfarms, which is currently navigating various challenges in the crypto-mining sector. The industry suffers from rising energy costs and intense competition, compounded by the recent Bitcoin halving that has significantly cut revenue from mining operations.
As Bitfarms continues its search for a CEO, Nicolas Bonta, co-founder and chairman, has stepped in as the interim leader. The company expressed confidence that the executive search is nearing completion, with an appointment expected in the coming weeks.
“The CEO executive search is nearing completion and that the Company will be appointing a new CEO in the next several weeks,” the company wrote.
Read more: Is Crypto Mining Profitable in 2024?
The market reacted negatively to Morphy’s firing, with Bitfarms’ shares falling over 6% on the announcement day. Such price action reflects concerns over the company’s stability and future direction, according to Javier Bastardo, Bitcoin Ambassador at Bitfinex.
“Companies in this sector must have a solid structure and know how to navigate different market conditions. However, disputes like this reduce their competitiveness, so beyond the negligible influence I believe this news will have on the industry, it raises questions about the company’s business and leadership,” Bastardo told BeInCrypto.
Last year, Bitfarms CEO Emiliano Grodzki resigned and was replaced by Geoffrey Morphy, who was fired this year. This comes amid a disastrous year for Bitcoin miners, which caused some large companies to declare bankruptcy.
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