According to Odaily, Bitcoin mining company Bitfarms is implementing a 'poison pill' strategy to prevent a takeover by its peer and competitor, Riot Platforms. The equity dilution anti-takeover measure, also known as a 'poison pill plan', is a strategy adopted to deter unsolicited acquisitions and attempt to reduce its appeal. Bitfarms has stated that the plan has been approved by the board of directors, with the aim of preserving the integrity of its previously announced strategic alternative review process and aligning with the best interests of its shareholders.
In recent weeks, Riot Platforms has accumulated 12% of Bitfarms' shares, aiming to create one of the world's largest Bitcoin mining companies. This move by Bitfarms is seen as a defensive strategy to maintain control and prevent a hostile takeover. The 'poison pill' strategy is a common tactic used by companies to discourage unwanted acquisitions by diluting the value of the company's stock, making it less attractive to potential buyers.