According to Bloomberg, Riot Bitfarms has initiated a poison pill defense strategy this week. This move is designed to dilute the equity of any entity that acquires 15% or more of the company's common shares. The Toronto-based firm has stated that Riot's previous takeover offer of $950 million would 'significantly undervalue' the company and its future growth potential.
Crypto miners have been urged to consolidate following an April update to the Bitcoin code. In response to this, Riot has announced its intention to call a shareholder meeting and nominate candidates to join Bitfarms' board of directors. Riot has expressed criticism towards the board and interim Chief Executive Officer Nicolas Bonta, accusing them of a 'track record of poor corporate governance.'
Bitfarms' shares have seen an increase of about 20% this week. On the other hand, Riot's shares fell by approximately 1% to $10.88 on Friday and have seen a decline of nearly 30% this year.