Riot’s Aggressive Takeover Bid Intensifies as Bitfarms Adopts New Strategy
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Riot’s takeover bid for Bitfarms has intensified after the Ontario Capital Markets Tribunal ruled in Riot’s favor, nullifying Bitfarms’ initial defensive strategy. Riot celebrated this as a triumph for Bitfarms shareholders, emphasizing the heightened competition in the bitcoin mining industry.
In response, Bitfarms implemented a new shareholder rights plan effective August 6, aimed at protecting against 'creeping bids.' This plan enables shareholders to exercise rights if any entity acquires 20% or more of Bitfarms' shares without a 'Permitted Bid,' which must stay open for 105 days and garner at least 50% support from independent shareholders.
Bitfarms initially proposed a rights plan in June to prevent a hostile takeover by Riot, which previously sought to dilute shareholder stock ownership if any entity amassed over 15% of shares. The revised 20% threshold plan is pending shareholder ratification and acceptance by the Toronto Stock Exchange.
The rivalry surged when Bitfarms rejected Riot’s $1 billion acquisition bid in May 2024, leading Riot to launch a public campaign to influence Bitfarms’ shareholders and management, including attempts to replace key board members. In response, Bitfarms strengthened its board with new appointments.
Riot has invested over $130 million to acquire 14.9% of Bitfarms' stocks, showcasing its determination for the takeover.
Kaynak: ultramining.com ↗
