Bitfarms has adopted a shareholder rights plan to foil Riot Platforms’ hostile takeover bid. The plan allows other shareholders to purchase shares at a discount if Riot’s stake exceeds 20% without board approval.
The plan, which passed after Bitfarms’ shareholder meeting, will complicate Riot’s effort but not necessarily stop it from succeeding.
The shareholder rights plan stipulates that, if a person and associated persons should become 15% holders of Canada-based Bitfarms’ shares by Sept. 20 and then increase their share to 20% without board approval, other shareholders could “purchase common shares at a significant discount to the market price at that time.”After that process, a takeover bid would be possible, as allowed under Canadian law. However, the bidder’s share would be diluted in the meantime.
“Disappointingly, Riot declined to participate in the process and instead has continued to acquire common shares of the Company in the open market in an attempt to undermine the integrity of the process and thwart the interest of third parties.”Bitcoin halving impacts miner Riot’s revenue by 43% despite new facility
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