Canadian Tribunal Strikes Down Bitfarms’ Poison Pill Against Riot Platforms

On Wednesday, Bitcoin mining firm Riot Platforms announced that a Canadian tribunal had invalidated Bitfarms’ “poison pill” defense against its acquisition attempt. Consequently, Bitfarms is no longer authorized to employ this strategy to thwart a potential hostile takeover.

The poison pill provision, which would have been triggered upon the acquisition of 15% of Bitfarms’ shares by any entity, has now been deactivated.

“This ruling from the tribunal in favor of Riot’s application is a win for all Bitfarms shareholders,” Jason Les, Riot CEO, said in a statement. The approach shows Bitfarms’ flawed governance and the directors’ efforts to entrench themselves, he added.

＼Trade On BTCC With 10 FREE USDT!／

Bitfarms Adopts Second ‘Poison Pill’ after Canadian Tribunal Terminates First

However, in reaction to the tribunal’s ruling, Bitfarms has implemented a second poison pill defense. The new ‘poison pill’, known as the shareholders rights plan, will trigger when against “creepy” bids accumulating more than 20 per cent of the Bitfarms’ common shares, the Canadian company said. The threshold was earlier set at 15 per cent.

Bitfarms announced that the newly implemented plan will remain in effect for a period of six months. The company further elaborated that a predefined trigger mechanism would enable current stockholders to acquire shares at a substantial discount to the prevailing market price, thereby potentially diluting the ownership stake of the acquiring entity.

Riot Platforms’ $950M Bitfarms Bid Rejected, Citing Undervaluation

It comes after Bitfarms rejected Riot’s $950m acquisition offer, arguing that it undervalued the company. To deter a hostile takeover, Bitfarms implemented a shareholder rights plan. Notably, Riot’s proposed acquisition valued Bitfarms at $2.30 per share, marking a 24% premium over its recent average share price.

Nonetheless, the board of directors at Bitfarms determined that this offer was inadequate and not aligned with the best interests of its shareholders.

Riot Intensifies Acquisition Efforts

Bitfarms took defensive measure, aiming to safeguard Bitfarms’ strategic review process and ensure thorough evaluation of potential offers.Despite Bitfarms’ defensive maneuvers aimed at deterring hostile takeovers by making it financially unfeasible for any entity to acquire over 15% of the company’s shares without board approval, Riot remains steadfast in its pursuit of acquiring Bitfarms.

Riot, currently holding a 14.9% stake in Bitfarms, has escalated its efforts by launching a dedicated website that addresses corporate governance concerns within Bitfarms and outlines its vision for a revamped board structure.  This strategic move underscores Riot’s determination and a more aggressive stance in its acquisition endeavors.

Concurrently, Riot has bolstered its operations by acquiring Block Mining for $92.5 million on July 24th.  This acquisition, financed through a mix of cash and stock, significantly enhances Riot’s mining capabilities and expands its geographical footprint.  Additionally, Block Mining stands to receive potential compensation tied to future expansion plans, contingent upon securing new power supply agreements, further bolstering Riot’s long-term growth prospects.

＼Trade On BTCC With 10 FREE USDT!／

 

You May Like:

Canada Cryptocurrency Market Analysis and Outlook 2024

How to Buy Pepe (PEPE) in Canada: A Complete 2024 Guide

How to Buy Ripple (XRP) in Canada

Beginner’s Guide: How to Buy Bitcoin in Canada

How to Choose Best Crypo Exchanges in Canada

Bitbuy vs. Coinbase: Which Is A Better Choice For Canadians?

BTCC Exchange Review 2024

A Beginner’s Guide: How To Buy Meme Coins In Canada In 2024

A Beginner’s Guide: How to Trading Crypto in Canada in 2024

How to Buy Pepe (PEPE) in Canada: A Complete 2024 Guide

How to Buy Ripple (XRP) in Canada

Following BTC And ETH, Solana ETF Is Finally Launching!

VanEck Files For First Spot Solana-Based ETF With SEC

Canada May See First Solana ETF as 3iQ Submits ETP Filing

Ethereum ETFs Process ‘Going Smoothly’: Ethereum ETFs Are Coming?

Ethereum ETFs Review: Everything You Need To Know About The Ethereum ETF Approval

ETH Surges 20% After SEC Asks For New Filings: Analysts See 75% Chance of Spot Ethereum ETF Approval

How To Buy Ethereum (ETH) In Canada: A Updated Guidance For 2024

SEC Approves Spot Ethereum ETFs: When Will Ether ETFs Begin Trading?

Best Cryptos to Buy Amid Higher Likelihood of Spot ETH ETF Approvals – Pepe, Arbitrum, Uniswap