The plan, which passed after Bitfarms’ shareholder meeting, will complicate Riot’s effort but not necessarily stop it from succeeding.
Bitcoin miner Bitfarms has adopted a shareholder rights plan 10 days after its Annual General and Special Meeting. The plan would allow Riot Platforms’ hostile takeover attempt to proceed, but only under highly constrained circumstances.
The shareholder rights plan stipulates that, if a person (in the legal sense) and associated persons should become 15% holders of Canada-based Bitfarms’ shares by Sept. 20 and then increase their share to 20% without board approval, other shareholders could “purchase common shares at a significant discount to the market price at that time.”
After that process, a takeover bid would be possible, as allowed under Canadian law. However, the bidder’s share would be diluted in the meantime.
