Bitfarms, a major player in the blockchain industry, has implemented a 'poison pill' strategy to deter an unsolicited takeover bid from Riot Platforms Inc. The Board of Directors unanimously approved a shareholder rights plan, aimed at preserving the integrity of the company's strategic review process. The plan will prevent any entity from gaining control of Bitfarms without offering fair value to all shareholders.

The strategy involves issuing new stock to existing shareholders, diluting the stake of any entity attempting a hostile takeover. Under the plan, rights will be issued for each common share outstanding as of June 20, becoming exercisable if any party acquires 15% or more of Bitfarms' shares without adhering to the plan's "Permitted Bid" provisions.

Riot Platforms, which made its takeover intentions public in May, offered to buy Bitfarms for about $950 million. Bitfarms rejected the offer, stating it significantly undervalued the company. Despite this, Riot has since increased its stake in Bitfarms to approximately 12%. The Toronto Stock Exchange (TSX) will defer its consideration of the Rights Plan until it receives assurance that the appropriate securities commission will not intervene.