Riot’s takeover bid for rival bitcoin miner <a href="https://ultramining.com/news/en/bitfarms-set-to-boost-mining-capacity-with-quebec-expansion/">Bitfarms</a> has intensified following a ruling by the Ontario Capital Markets Tribunal. The tribunal sided with Riot, terminating Bitfarms’ initial “poison pill” strategy. Riot hailed this as a victory for Bitfarms shareholders, highlighting the fierce competition in the bitcoin mining sector. Bitfarms responded by adopting a new shareholder rights plan to protect against "creeping bids," where a company accumulates a significant stake without a formal takeover bid, according to <a href="https://theminermag.com/news/2024-07-25/riot-bitfarms-bitcoin-takeover/">TheMinerMag</a>. 
The new plan, effective August 6, grants shareholders one right per share, exercisable if any person or group acquires 20% or more of Bitfarms' shares without a “Permitted Bid.” A Permitted Bid requires the offer to remain open for 105 days and gain at least 50% of independent shareholder support. Bitfarms initially introduced a rights plan in June to prevent a hostile takeover by Riot, which would have triggered shareholder dilution if any entity amassed over 15% of Bitfarms’ stocks. The revised plan, with a 20% threshold, awaits shareholder ratification and Toronto Stock Exchange acceptance. 
The rivalry between Riot and Bitfarms has escalated since Bitfarms rejected Riot’s $1 billion acquisition bid in May 2024. Riot subsequently launched a public campaign to sway Bitfarms’ shareholders and management, seeking to replace key board members. In response, Bitfarms strengthened its board by appointing tech and crypto executive Fanny Philip and promoting Ben Gagnon to CEO. 
Riot has invested over $130 million to acquire 14.9% of Bitfarms' outstanding stocks, underscoring its commitment to the takeover.

Riot’s Aggressive Takeover Bid Intensifies as Bitfarms Adopts New Strategy

Ultramining_Eng

Andre artikler udgivet 26. jul. 2024

TRON (TRX), Rollblock (RBLK) and Kaspa (KAS): Which Crypto Should You Buy For the Altcoin Season?

OpenOcean Launches DCA (Dollar-Cost Averaging) Beta Tool on Base Chain

ZKX Unveils ‘Isolated Funds’ to Minimize Losses for Users

Argentina Allows Bitcoin in Company Capital

Ethereum Plummets 8.5% Following ETF Outflows: Analyzing the Market Reaction

Russian ransomware generates over $500m in crypto proceeds, TRM Labs says

Join our free newsletter for daily crypto updates!