Bitcoin Miner Bitfarms Fights Takeover Riots With Poison Pill Plan – Crypto News BTC
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Bitcoin Miner Bitfarms Fights Takeover Riots With Poison Pill Plan – Crypto News BTC

Bitcoin mining agency Bitfarms has carried out a shareholder rights plan to protect its shareholders’ pursuits in the face of an unwanted takeover bid from fellow Bitcoin mining company Riot Platforms.

This transfer follows Riot Platforms’ increased stake in Bitfarms and their supply to accumulate all prime shares.

Strategic Protection of Bitfarms Against a Hostile Takeover Attempts

Bitfarms’ technique, often known as the “poison pill,” aims to deter hostile takeovers by making such offers too expensive for the buyer. This tactic ensures that Bitfarms can continue the strategic review process without disruption, exploring options such as business combinations, strategic transactions or a possible sale.

Learn more: 5 Best Platforms to Buy Bitcoin Mining Stocks in 2024

“Riot’s actions, together with the proposal obtained on April 22, 2024 and subsequent market purchases to increase its shareholding, were found by the Special Committee of Impartial Administrators to undervalue Bitfarms. “This committee believes that the continued acquisition of Riot stock disrupts the integrity of the strategic assessment process and impedes the maximization of shareholder value,” the corporation said.

The rights plan, effective from June 20, 2024, covers all new widely distributed shares and is triggered if an entity acquires more than 15% of Bitfarms shares by September 10, 2024, or 20% after that date, without complying with the plan. This rights plan allows Riot to complete an acquisition that complies with Canadian securities regulatory guidelines. Additionally, it protects existing shareholders by allowing them to purchase additional shares at a discounted price if the purchaser exceeds the required thresholds.

Implementation of the plan will depend on shareholder approval of each Bitfarms and Toronto Inventory Trade. The current recognized takeover attempt is Riot’s bid.

BeInCrypto previously reported that Riot Platforms made an unsolicited offer worth $950 million in May to raise Bitfarms. Riot privately delivered cash and stock in April at $2.30 per share, about 20% above Bitfarms’ pre-supply bid and ask value. As of June 5, Riot currently holds 47,830,440 shares, representing approximately 11.62% of the perfect stock issued by Bitfarms.

Learn more: Best Cryptocurrency Mining Stocks to Buy or Watch Now

Bitfarms (BITF) Price Performance.Bitfarms (BITF) Price Performance.
Performance worth BITF. Delivery: Google Finance

Following the announcement of the rights plan, the Nasdaq share price of Bitfarms (BITF) has fallen by 4.17% in the last 24 hours, while the share price of Riot Platforms (RIOT) has risen by 1.8%. Nevertheless, over the last 30 days, Bitfarms’ stock value has increased by 44.65% compared to Riot’s achievement of 4.16%.

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