Bitfarms to adopt 'poison pill' amid Riot takeover attempt
Bitcoin miner Bitfarms said on Monday it had approved the adoption of a "poison pill" to fend off a potential hostile takeover attempt by rival Riot Platforms.
The move comes days after Riot Platforms disclosed it had built a 12% stake in Bitfarms as it pursues a takeover attempt.
Riot had initially made a private proposal to buy Bitfarms in April. The proposal was rejected by Bitfarms' board after it concluded that the offer «significantly undervalued» the company.
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.
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View Details» U.S.-listed shares of Bitfarms were down 2.5% in premarket trading.
Under Bitfarm's plan, if an entity accumulates more than 15% of Bitfarms' stake after June 20 and up to Sept. 10, the company would issue fresh shares, diluting the entity's stake.
After Sept. 10, the threshold would be relaxed to 20% as long as any takeover attempt meets certain conditions.
