In a press release on June 12, Riot Platforms criticized Canadian Bitcoin mining company Bitfarms’ adoption of a Rights Plan, commonly known as a “poison pill,” to safeguard against takeover attempts. Riot Platforms, based in Colorado, stated that this move directly conflicts with established legal and governance standards. The company further asserted that Bitfarms’ decision is indicative of its board of directors disregarding sound corporate governance practices. Riot Platforms pledged to persist in addressing what it perceives as serious governance issues within Bitfarms.
“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
Bitfarms’ recent actions, including the voting out of co-founder Emiliano Grodzki less than two weeks ago, have been interpreted by Les as indicative of their dissatisfaction. In response, Bitfarms defended its decision to implement the shareholder rights plan, stating that it was unanimously approved by the board to maintain the integrity of its strategic review process. The company emphasized that the plan is in the best interests of all shareholders.
The Rights Plan entails Bitfarms issuing additional shares to dilute an investor’s stake if they attempt to hold 15% of the firm’s shares. Riot Platforms, holding 47,830,440 common shares, representing 11.62% of Bitfarms’ shares, recently expressed its intention to acquire all issued and outstanding common shares of Bitfarms for $950 million.
