Riot says ‘poison pill’ adopted by Bitfarms conflicts with ‘legal and governance standards’

Riot Platforms said the company will “continue to push” to resolve “serious corporate governance issues” at Bitfarms despite the recently passed “poison pill.”

Riot Platforms said in June that the Rights Plan (often referred to as a “poison pill”) adopted by Canadian Bitcoin mining company Bitfarms to protect itself from takeover attempts “directly contradicts established legal and governance standards.” 12 press releases.

The Colorado-based company said its rival’s latest decision was “further evidence that Bitfarms’ board has ignored good corporate governance,” adding that it would continue to address “serious issues” in Bitfarms’ governance process.

“We will continue to strive to resolve the serious corporate governance issues at Bitfarms and ensure shareholders have a say in the company’s path forward.”

Riot Platforms CEO Jason Les

Les also stated that Bitfarms’ recent actions show their dissatisfaction, noting the board’s decision to vote out the company’s co-founder Emiliano Grodzki less than two weeks ago.

Bitfarms defended its decision in a press release, noting that the board had unanimously approved the shareholder rights plan to “protect the integrity” of the process to review strategic alternatives. The company also argued that the plan “is in the interest of all Bitfarms shareholders.”

Under the Rights Plan, Bitfarms plans to issue additional shares to dilute an investor’s stake if an entity aims to hold 15% of the company’s shares. Riot Platforms, which currently owns 47,830,440 common shares representing 11.62% of Bitfarms’ shares, recently signaled its intention to acquire all issued and outstanding common shares of Bitfarms for $950 million.