The Ontario Capital Markets Tribunal has terminated Bitfarms’ first “poison pill” designed to counter a takeover attempt by Riot Platforms. This decision was made after Riot Platforms initiated a bid to acquire Bitfarms’ outstanding shares.
Riot Platforms’ CEO, Jason Les, hailed the ruling as a victory for Bitfarms shareholders, criticizing the initial poison pill as a sign of poor corporate governance. Bitfarms adopted this measure in early June to protect against Riot’s takeover bid.
Immediately after the regulator’s decision, Bitfarms introduced a new rights plan to ensure fair treatment of all shareholders in future unsolicited bids. This plan targets “creeping bids” and allows shareholders to buy shares at a discount, diluting any acquirer’s stake if triggered.
In April, Riot Platforms proposed a $950 million acquisition of Bitfarms but withdrew the offer due to lack of engagement from Bitfarms’ board. The new rights plan underscores Bitfarms’ strategy to protect shareholder interests and maintain control over the company’s future.
