Bitfarms Adopts Poison Pill to Block Riot’s Takeover Bid

  • Sergey Maga
  • 11 June, 2024 11:00
Bitfarms Adopts Poison Pill to Block Riot’s Takeover Bid

Canadian bitcoin mining firm Bitfarms has approved a shareholder rights plan to block a potential hostile takeover by rival Riot Platforms. This move, known as a poison pill, aims to dilute shares and discourage unwanted takeovers. Effective after June 20, each Bitfarms common share will come with one right, exercisable if any entity accumulates over 15% of the company’s shares before September 10. This threshold will increase to 20% after September 10 if specific criteria are met, according to TheMinerMag.

Riot recently became a beneficial owner of Bitfarms, acquiring 11.62% of its shares by June 5. Riot initially offered $2.3 per share to acquire 100% of Bitfarms’ common stocks in April. However, Bitfarms rejected the offer, claiming it undervalued the company and its growth prospects.

Riot continued its acquisition efforts, accumulating 47.83 million shares. Bitfarms’ poison pill adoption must still be approved by the Toronto Stock Exchange. The company’s stock fell by 5% during pre-market trading on Monday. This strategic move highlights Bitfarms’ intent to remain independent while preventing hostile takeovers.

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