Bitcoin miner Bitfarms adopted a second ‘poison pill’ on Wednesday after a Canadian tribunal halted the first to prevent Riot Platforms from taking over
According to the Canadian company, the shareholder’s rights plan, a new “poison pill,” will be activated when “creepy” bids accumulate more than 20% of Bitfarms’ ordinary shares. The threshold was previously established at 15%.
Bitfarms stated that the new plan will be in effect for six months. They also noted that a catalyst would enable current stockholders to purchase shares at a substantial discount to the market price, thereby diluting their stake.
Riot disclosed the Ontario Capital Markets Tribunal’s decision to suspend Bitfarms’ initial “poison pill” earlier in the day.
In June, Riot disclosed a 12% stake in Bitfarms.
The latter rejected a $950 million offer, claiming it undervalued the company. Bitfarms implemented a “poison pill” to prevent a hostile acquisition.
Riot had declared its intention to request a special shareholder meeting to appoint independent directors to Bitfarms’ board.
On Wednesday, Bitfarms announced that its new rights plan enables Riot to proceed with its three board nominations – John Delaney, Amy Freedman, and Ralph Goehring – and to solicit proxies for the October board meeting.