Bitfarms Enacts Poison Pill Defense Against Riot Platforms' Takeover Attempt
CryptoNewsTerminal Staff10 Jun, 2024
Bitfarms Enacts Poison Pill Defense Against Riot Platforms' Takeover Attempt
Bitfarms Ltd., a publicly traded Canadian cryptocurrency mining company, has implemented a poison pill strategy to protect itself against a hostile takeover attempt by rival Riot Platforms Inc., according to a report by Reuters. The poison pill, a defensive measure designed to deter unsolicited takeover bids, was triggered after Riot Platforms disclosed that it had acquired a 12% stake in Bitfarms. Under the poison pill provisions, if Riot Platforms acquires more than 15% of Bitfarms' outstanding shares, the company will issue new shares to existing shareholders, diluting Riot Platforms' ownership stake. This threshold will increase to 20% starting on September 10, 2023. This move by Bitfarms is a clear indication that the company is determined to remain independent and fend off any attempts by Riot Platforms to gain control. It remains to be seen how Riot Platforms will respond to this latest development, but the poison pill strategy has likely made a takeover attempt more challenging and expensive.
