Riot CEO Demands Resignation of Bitfarms Chief Over Poison Pill Defense

IconCryptoNewsTerminal Staff13 Jun, 2024

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Riot CEO Demands Resignation of Bitfarms Chief Over Poison Pill Defense

Jason Les, CEO of Bitcoin mining company Riot Platforms, is demanding the resignation of Bitfarms CEO Nicolas Bonta over the implementation of a "poison pill" strategy designed to deter a takeover bid from Riot Platforms. Riot Platforms disclosed an intent to acquire Bitfarms and revealed acquiring a 12% stake in the company. In response, Bitfarms adopted the poison pill strategy, stating that it would dilute the value of its shares by issuing new shares if Riot Platforms crossed a 15% ownership threshold. Les sees this move as entrenchment by Bitfarms' management and a breach of fiduciary duty. He believes the poison pill is solely to preserve the power of the incumbent management, not in the best interest of the company and its shareholders. This situation highlights the complexities and potential conflicts of interest that arise in corporate takeovers. Shareholders will be closely monitoring the outcome of this dispute, as it could set a precedent for how companies respond to unsolicited takeover bids in the future.

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