Bitfarms Adopts ‘Poison Pill’ After Riot Takeover Offer Turns Hostile
- Entity that acquires more than 15% stake would face dilution
- Riot said last week it holds 12% of Bitfarms common stock
Employees check fans on mining machines at the Bitfarms cryptocurrency farming facility in Farnham, Quebec.
Photographer: Christinne Muschi/BloombergThis article is for subscribers only.
Bitcoin mining company Bitfarms Ltd. is adopting a “poison pill” shareholder rights plan as a defense after an unsolicited takeover offer by larger rival Riot Platforms Inc.
A poison pill strategy is a measure used to prevent corporate takeovers by making a deal too expensive for the acquiring company. Under terms of the plan, if an entity acquires an equity stake of more than 15% by Sept. 10, Bitfarms will issue new stock to prior existing shareholders, diluting the stake of the entity pursuing a hostile takeover, Bitfarms said in a statement Monday.