Riot Platforms has criticized Bitfarms' adoption of a "poison pill" shareholder rights plan, calling it an unfriendly move aimed at thwarting Riot's unsolicited takeover bid for the company.[1]

The "poison pill" strategy, implemented by Bitfarms, is a defensive tactic designed to make a hostile takeover prohibitively expensive for the acquirer. If triggered, it would dilute Riot's existing 12% stake in Bitfarms by issuing new shares to other shareholders.[4][5]

Bitfarms claims the plan is necessary to protect the integrity of its ongoing strategic review process, which is exploring various alternatives including potential business combinations or a sale.[3][6] The company argues that Riot's continued accumulation of shares undermines this process and prevents maximizing shareholder value.[6]

While Riot can still proceed with a takeover bid in compliance with Canadian securities laws, the "poison pill" raises the acquisition threshold and makes it costlier for Riot to increase its stake beyond 15% before September 10 or 20% thereafter.[3][4][6] The plan requires approval from Bitfarms' shareholders within six months and is awaiting acceptance by the Toronto Stock Exchange.[4][6]

Sources [1] https://www.riotplatforms.com/riot-comments-on-bitfarms-adoption-of-shareholder-unfriendly-poison-pill/ [2] Bitfarms Adopts 'Poison Pill' After Riot Takeover Offer Turns Hostile https://www.bloomberg.com/tosv2.html?url=L25ld3MvYXJ0aWNsZXMvMjAyNC0wNi0xMC9iaXRmYXJtcy1hZG9wdHMtcG9pc29uLXBpbGwtYWZ0ZXItcmlvdC10YWtlb3Zlci1vZmZlci10dXJucy1ob3N0aWxl&uuid=b5661115-2767-11ef-90a1-ad955fc55c62 [3] Bitfarms adopts 'poison pill' amid Riot Platforms' takeover attempt https://crypto.news/bitfarms-adopts-poison-pill-amid-riot-platforms-takeover-attempt/ [4] Bitfarms Adopts "Poison Pill" Strategy in Response to Riot Platforms ... https://www.tftc.io/bitfarms-adopts-poison-pill-riot-takeover-bid/ [5] Bitcoin Miner Bitfarms Counters Riot Platform's Takeover Bid with ... https://cryptoadventure.com/bitcoin-miner-bitfarms-counters-riot-platforms-takeover-bid-with-poison-pill-strategy/ [6] Bitfarms Announces Adoption of Shareholder Rights Plan https://investor.bitfarms.com/news-events/press-releases/detail/246/bitfarms-announces-adoption-of-shareholder-rights-plan