The post Bitfarms Adopts ‘Poison Pill’ to Prevent Hostile Riot Platforms Takeover appeared on BitcoinEthereumNews.com.

Coinspeaker Bitfarms Adopts ‘Poison Pill’ to Prevent Hostile Riot Platforms Takeover Leading global Bitcoin mining company Bitfarms approved a new shareholder rights plan on Monday to protect itself from a hostile takeover attempt by rival mining company Riot Platforms. Commonly called a “Poison Pill”, the Rights Plan is a defense strategy that shields the company from external factors that threaten its integrity. In a Monday press release, Bitfarms noted: “The Rights Plan is being adopted to preserve the integrity of our previously announced strategic alternatives review process and is in the best interests of all Bitfarms’ shareholders.” Riot Platforms Plans Takeover Bitfarms considered the poison pill necessary because of Riot Platforms’ recent moves. The press release explains that Bitfarms received a proposal from Riot on April 22, when the latter held 14.8 million common Bitfarms shares, representing 3.61%. However, Bitfarms’ Special Committee concluded that the proposal was low, at $950 million, and tried to involve Riot in a Strategic Alternatives Review Process. Unfortunately, Riot has refused to participate and is buying up more Bitfarms shares “to undermine the integrity of the process and thwart the interest of third parties”. Since the initial attempt, Riot has acquired an additional 8.01% of Bitfarms’ common shares. The press release states that Riot now holds 47.8 million shares, representing 11.62%. Riot plans to call a special shareholder meeting because of its proposal. The company intends to discuss the potential appointment of a new independent director, suggesting that Bitfarms’ directors are not acting in the best interest of shareholders. In a press release, Riot CEO Jason Les writes that Bitfarms Board founders Nicolas Bonta and Emiliano Grodzki are not acting in the best interest of the company’s shareholders. Les cited the termination of Bifarms’ CEO “without a transition plan”, as well as allegations the ousted…

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Filed under: News - @ June 11, 2024 2:10 am