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Bitcoin Miner Bitfarms Counters Riot Platform’s Takeover Bid with “Poison Pill” Strategy

Bitcoin mining firm Bitfarms has implemented a shareholder rights plan to protect its shareholders’ interests amidst an unsolicited takeover bid from another Bitcoin miner—Riot Platforms.

This move follows Riot Platforms’ increased stake in Bitfarms and their offer to acquire all outstanding shares.

Bitfarms’ Strategic Defense Amid Hostile Takeover Attempts

Bitfarms’ strategy, known as a “poison pill,” aims to prevent hostile takeovers by making such deals prohibitively expensive for the acquirer. This tactic ensures Bitfarms can continue its strategic review process without disruption, exploring options like business combinations, strategic transactions, or a potential sale.

The plan’s implementation depends on approval from both Bitfarms’ shareholders and the Toronto Stock Exchange. Currently, Riot’s bid is the only known takeover attempt.

BeInCrypto previously reported that Riot Platforms made an unsolicited $950 million offer in May to acquire Bitfarms. Riot privately offered $2.30 per share in cash and stock in April, about 20% above Bitfarms’ trading price before the offer. As of June 5, Riot currently owns 47,830,440 shares, approximately 11.62% of Bitfarms’ issued and outstanding stock.


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