{"id":14217,"date":"2024-06-10T16:58:32","date_gmt":"2024-06-10T13:58:32","guid":{"rendered":"https:\/\/forklog.com\/en\/bitfarms-adopts-poison-pill-to-thwart-riot-platforms-takeover\/"},"modified":"2024-06-10T16:58:32","modified_gmt":"2024-06-10T13:58:32","slug":"bitfarms-adopts-poison-pill-to-thwart-riot-platforms-takeover","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitfarms-adopts-poison-pill-to-thwart-riot-platforms-takeover\/","title":{"rendered":"Bitfarms Adopts ‘Poison Pill’ to Thwart Riot Platforms Takeover"},"content":{"rendered":"

The board of directors of the mining company Bitfarms has adopted<\/a> a shareholder rights plan following a purchase proposal from competitor Riot Platforms.<\/p>\n

This initiative, commonly referred to as a “poison pill<\/a>,” aims to protect the interests of security holders by preventing any potential hostile takeover attempts.<\/p>\n

On May 29, it was revealed that Riot Platforms had made a $950 million acquisition offer<\/a>. The proposal included a 20% premium over the average stock prices for the month.<\/p>\n

At that time, Bitfarms’ board expressed a desire to continue discussions on the potential deal “in a substantive manner,” while adhering to traditional confidentiality measures. A special committee stated that the offer “significantly undervalues the company and its growth prospects.”<\/p>\n

At this stage, Riot Platforms declined to participate in the process of exploring strategic alternatives.<\/p>\n

\n

“Instead, [it] continued to acquire the company’s common shares on the open market, purchasing an 8.01% stake since April 22, 2024,”<\/em> the press release states.<\/p>\n<\/blockquote>\n

As a result, Riot Platforms’ stake reached 11.62%.<\/p>\n

The “poison pill” sets a threshold for securities accumulation at 15% before it triggers, intended to prevent an immediate threat to the strategic review process.<\/p>\n

According to the document, starting June 20, one right will be issued per common share, which can be exercised if any person, along with certain related parties, acquires 15% or more of the outstanding securities before September 10 or 20% thereafter, without adhering to the plan’s rules.<\/p>\n

In January, CoinShares experts included Bitfarms<\/a> among the few mining enterprises expected to remain profitable post-halving, even with Bitcoin prices around $40,000.<\/p>\n

Earlier in June, Core Scientific rejected a non-binding offer from AI firm CoreWeave to purchase all outstanding shares at $5.75 each, totaling approximately $1.02 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"

The board of directors of the mining company Bitfarms has adopted a shareholder rights plan following a purchase proposal from competitor Riot Platforms. This initiative, commonly referred to as a “poison pill,” aims to protect the interests of security holders by preventing any potential hostile takeover attempts. On May 29, it was revealed that Riot […]<\/p>\n","protected":false},"author":1,"featured_media":14216,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1184,83,1137,1235,1186],"class_list":["post-14217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitfarms","tag-business","tag-cryptocurrency-mining","tag-mergers-and-acquisitions","tag-riot-platforms"],"aioseo_notices":[],"amp_enabled":true,"views":"10","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=14217"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/14217\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/14216"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=14217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=14217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=14217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}