Bitfarms Ltd. has adopted a shareholder rights plan to protect the integrity of its ongoing Strategic Alternatives Review Process. This plan was unanimously approved by the Board and involves issuing rights to shareholders to prevent unwanted takeovers. Riot Platforms Inc., which owns 11.62% of Bitfarms, made an unsolicited bid to acquire all shares and plans to requisition a special shareholder meeting. The Special Committee, after evaluating Riot’s proposal, deemed it undervalued the company and rejected it. The rights plan restricts acquisitions beyond 15% of shares without complying with “Permitted Bid” provisions, aiming to ensure fair consideration of all strategic alternatives. The plan is subject to shareholder ratification within six months and requires approval from the Toronto Stock Exchange.
Bitfarms Adopts Defensive Measures Against Riot Platforms' Takeover
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