“Bitfarms Implements ‘Poison Pill’ Amid Riot Takeover Bid”, “Bitfarms Adopts ‘Poison Pill’ Strategy Against Potential Riot Platforms Takeover” – Bitcoin miner Bitfarms announced on Monday its decision to implement a “poison pill” defense mechanism, aimed at deterring a possible hostile takeover bid from competitor Riot Platforms.
“Bitfarms’ ‘Poison Pill’ Response Follows Riot Platforms’ 12% Stake Acquisition” – Bitfarms’ decision to implement a “poison pill” defense comes in the wake of Riot Platforms’ revelation of acquiring a 12% stake in Bitfarms, signaling their intent for a takeover bid.
Colorado-based Riot went public with its proposal in May to buy the bitcoin miner for about $950 million and said it intends to request a special shareholder meeting to add independent directors to Bitfarms’ board.
After Sept. 10, the threshold would be relaxed to 20 per cent as long as any takeover attempt meets certain conditions.
Shareholder rights plans, known as “poison pill,” are used by corporate boards to thwart hostile takeover bids.”Bitfarms Unveils Defensive Strategy: Dilution of Stake for Accumulating Over 15% Ownership After June 20″ – Bitfarms announces a defensive measure whereby if an entity amasses more than 15% ownership stake in the company after June 20 and up to September 10, Bitfarms will issue additional shares, consequently diluting the entity’s stake.
Bitfarms said the shareholder rights plan aimed to preserve the integrity of its previously announced strategic alternatives review process.
The bitcoin miner started conducting a strategic alternatives review last month after receiving Riot’s proposal. The review includes a possible merger or sale of the company.
The rights plan is subject to shareholder ratification within six months of its adoption, failing which it will terminate, Bitfarms said.
