Bitfarms will take a “poison pill” in connection with the attempted takeover of Riot
1 min read

Bitfarms will take a “poison pill” in connection with the attempted takeover of Riot

(c) Copyright Thomson Reuters 2024

(Reuters) – Bitcoin mining company Bitfarms said on Monday it has approved taking a “poison pill” to fend off a potential hostile takeover attempt by rival Riot Platforms.

The move comes days after Riot Platforms revealed it had built a 12% stake in Bitfarms amid a takeover attempt. Last month, Riot offered to buy Bitfarms for approximately $950 million.

Bitfarms said the shareholder rights plan seeks to maintain the integrity of its previously announced strategic alternatives review process.

Poison pill plans, including shareholder rights plans, are used by corporate boards to thwart hostile takeover bids.

Under Bitfarm’s plan, if an entity accumulates more than 15% of Bitfarms’ shares after June 20 and by September 10, the company will issue new shares, diluting the entity’s shares.

After September 10, the threshold will be lowered to 20% as long as any takeover attempt meets certain conditions.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)

Disclaimer: This report is auto-generated from the Reuters news service. ThePrint is not responsible for their content.