Bitcoin Miner, Who Rejected a Billion Dollar Offer, is Ready to Swallow the Poisonous Pill

Bitcoin mining company Bitfarms took the risk of taking a "poison pill" to avoid falling into the hands of its rival.

According to Reuters, Bitfarms has taken action against rival mining company Riot Platforms.

Ready to go the dilution route

Bitfarms has taken precautions against the possibility that any company could acquire more than 15% of Bitfarms shares between June 20 and September 10.

If any company acquires more than 15% shares, the company will dilute the shares of that company by issuing new shares. This rate will be increased to 20% after September 10.

According to Bitfarms' statement, the aim of the plan approved by the board of directors will be to "preserve the integrity" of the company's previous strategic decision. This was also stated to be in the interest of shareholders.

He turned down billions of dollars

Riot Platforms has made an offer worth almost $1 billion to acquire rival Bitfarms. Riot executives turned down this offer in April.

Bitfarms planned to acquire all outstanding Bitfarms shares at $2.30 per share.

Riot purchased a 9.25% stake in Bitfarms on May 28 and became the company's largest shareholder. On June 5, it purchased another 1.5 million shares, increasing its share to approximately 12%.

Bitfarms' former CEO, Geoffrey Morphy, filed a $27 million lawsuit against the company on the grounds that his contract was violated. Bitfarms executives later dismissed Morphy.