Bitfarms’ stock has skyrocketed over 47% in the last month as a heated battle plays out between the crypto mining firm and its prospective buyer, Riot Platforms.
The drama began in May when Riot, a U.S. mining company, offered to acquire the Canada-based Bitfarms for $950 million. Although Bitfarm declined the offer, Riot has since been purchasing Bitfarms’ shares on the open market, accumulating a 13.1% stake worth over $111 million.
However, Bitfarms is fighting the hostile takeover attempt. On Wednesday, the company enacted a ‘poison pill’ shareholder rights plan to prevent Riot from acquiring over a 15% stake. This defensive tactic would dilute Riot’s shareholding if it crossed the threshold, slowing its ability to gain control.
In a June 12 statement, Riot CEO Jason Les blasted the move as violating “established legal and governance standards.” He accused Bitfarms’ interim CEO, Nicolas Bonta of “poor corporate governance” and called for his removal.
“In our most recent letter, we urged the Bitfarms Board to facilitate the resignation and removal of Chairman and interim CEO Nicolas Bonta, who has led the Bitfarms Board since 2018 and bears direct responsibility for its poor corporate governance practices, as a first step to address shareholders’ concerns”
Riot CEO Jason Les said
However, Bitfarms maintained that its poison pill was intended to allow for proper regulatory procedures in connection with the bid from Riot. Nonetheless, these comments show that neither side is backing down in this battle for dominance.
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