Riot Platforms has stated that it will persist in addressing the “serious corporate governance issues” at Bitfarms, despite the company’s recent adoption of a “poison pill.”
Bitfarms, a Canadian Bitcoin mining firm, implemented a Rights Plan (commonly known as a “poison pill”) to defend against takeover attempts. Riot Platforms criticized this move in a June 12 press release, claiming it is “in direct conflict with established legal and governance standards.”
The Colorado-based company argued that Bitfarms’ decision further demonstrates the board’s disregard for sound corporate governance and reaffirmed its commitment to addressing these “serious issues” in Bitfarms’ governance practices.
“We will continue to push to address the serious corporate governance issues at Bitfarms and ensure that shareholders have a say on the company’s path forward.”
Riot Platforms CEO Jason Les
Les also pointed out that Bitfarms’ recent actions, including the board’s decision to vote out co-founder Emiliano Grodzki less than two weeks ago, reflect their dissatisfaction.
In response, Bitfarms defended its move by stating in a press release that the board unanimously approved the shareholder rights plan to “preserve the integrity” of its strategic alternatives review process. The company emphasized that the plan serves “the best interests of all Bitfarms’ shareholders.”
Under the Rights Plan, Bitfarms plans to issue additional shares to dilute the ownership stake of any entity attempting to acquire 15% or more of the company’s shares. Riot Platforms, which currently holds 47,830,440 common shares—about 11.62% of Bitfarms’ shares—has recently expressed its intention to acquire all of Bitfarms’ issued and outstanding common shares for $950 million.
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