Riot Platforms, a prominent Bitcoin miner, has retaliated against Bitfarms’ implementation of a “poison pill” policy aimed at impeding a potential takeover. Bitfarms had enacted this strategy after Riot Platforms unveiled its intention to increase its stake in Bitfarms, potentially enabling a hostile takeover, The Block said in a report.
This week, Bitfarms adopted a “poison pill” policy, designed to prevent any single shareholder from acquiring 15% or more of its shares, a move evidently in response to Riot’s plans. In response, Riot Platforms disclosed its acquisition of nearly 6 million shares of Bitfarms over the past week, elevating its stake to 13.1%. CEO Jason Les criticized Bitfarms’ defensive tactics, citing a lack of private engagement and good faith.
“Instead of engaging with us privately and in good faith, Bitfarms has responded by implementing an off-market Poison Pill with a trigger well below the customary 20% threshold,” Les stated in an official announcement.
Riot’s hostile takeover endeavor follows its previous attempt to acquire all of Bitfarms’ shares for approximately $950 million, an offer which Bitfarms declined. Both companies refrained from immediate comment on the issue.
The battle for control over Bitfarms comes amidst internal upheaval within the company. Bitfarms witnessed the removal of its CEO, Geoffrey Morphy, in May due to governance disputes, further intensifying Riot’s efforts to gain control.
