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Riot Platforms Expands Stock Pool and Changes Executive Severance Terms by Investing.com

Riot Platforms, Inc. (NASDAQ:RIOT), a financial services company formerly known as Riot Blockchain (NASDAQ:), Inc., has announced several significant corporate changes, including an expansion of its stock pool and changes to its executive compensation plans, according to a recent SEC filing. application.

At the annual meeting on Monday, the company’s shareholders approved the Sixth Amendment to the 2019 Equity Incentive Plan, which adds 15,000,000 shares to the stock pool available for compensatory stock awards. This change, first recommended by the Board of Directors and the 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 redeemed under certain conditions.

In addition, the company has revised severance packages for its executive officers, effective Monday. The changes, approved by the Board of Directors upon the recommendation of the Compensation Committee, specify different 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.

No severance payment will be granted in the event of termination for urgent reasons. Voluntary dismissal without good reason or without a proper notice period also does not result in severance pay. However, severance packages, including base salary and prorated bonuses, may be offered for other types of separations, such as failure to renew employment terms, termination without cause, or termination due to a change in control. The specific benefits depend on the circumstances of the termination.

Additionally, Riot Platforms has adopted a new indemnification agreement for its directors and officers, citing inadequate liability insurance coverage under Nevada law. The company considers these agreements essential for attracting and retaining the necessary talent.

In another major development, Riot Platforms has doubled its authorized common shares from 340 million to 680 million, after shareholders approved an amendment to its articles of association.

The filing also confirms the election of directors and ratification of Deloitte & Touche as the company’s independent registered public accounting firm for the year ended December 31, 2024. In addition, shareholders have approved management compensation for the year ended December 31, 2023 approved.

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 at the center of several major developments. Cantor Fitzgerald initiated coverage on Riot Platforms, citing low mining costs, significant scale and a strong balance sheet.

The company also highlighted the company’s expected organic capacity growth over the next 18 months, as well as the planned acquisition of BITF, which is expected to expand the company’s international footprint.

Riot Platforms reported a drop in production in May 2024, but managed to increase the total deployed hash rate to 14.7 exahashes per second (EH/s). The company has also proposed a $950 million acquisition of Bitfarms, another crypto mining company, a move that has drawn mixed reactions from analysts.

Riot Platforms has completed the first 100 MW building at the Corsicana Facility in Texas, adding to mining capacity. The company expects to achieve a self-mining hash rate capacity of 31 EH/s by the end of 2024. In addition, Riot Platforms has appointed Stephen Howell, CEO of ESS Metron, as Chief Operating Officer.

Analysts at Bernstein SocGen Group and JPMorgan (NYSE:) have maintained positive ratings on Riot’s stock, while analysts at HC Wainwright were skeptical 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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