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

Riot Platforms says the company “will continue to push” to address the “serious corporate governance issues” at Bitfarms despite the recently adopted “poison pill.”

The Rights Plan (commonly referred to as a “poison pill”), which was adopted by Canadian Bitcoin mining firm Bitfarms to protect itself from takeover attempts, is in “direct conflict with established legal and governance standards,” Riot Platforms said in a Jun. 12 press release.

The Colorado-headquartered company says the recent decision made by its rival is “further evidence of the Bitfarms board of directors disregarding good corporate governance,” adding that it will continue to address the “serious issues” in Bitfarms’ governance process.

“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 noted that Bitfarms’ recent actions indicated their discontent, highlighting 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, stating that the board unanimously approved the shareholder rights plan to “preserve the integrity” of its strategic alternatives review process. The company also asserted that the plan is “in the best interests 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 firm’s shares. Riot Platforms, which currently holds 47,830,440 common shares, representing 11.62% of Bitfarms’ shares, recently signaled its intention to acquire all of Bitfarms’ issued and outstanding common shares for $950 million.