The Ontario Capital Markets Tribunal has ended Bitfarms’ initial “poison pill” strategy aimed at preventing a takeover attempt by competitor Riot Platforms.

A division of the Ontario Securities Commission, the Ontario Capital Markets Tribunal, halted the shareholder rights plan implemented by Bitcoin mining company Bitfarms after its competitor Riot Platforms initiated a takeover bid.

Riot Platforms chief executive Jason Les commented on the ruling, stating it is a “win for all Bitfarms shareholders,” and criticized the poison pill as “an example of the broken corporate governance that plagues Bitfarms and ongoing attempts by the Bitfarms directors to entrench themselves.”

Bitfarms adopted the initial “poison pill,” also known as the “rights plan,” in early June in response to Riot Platforms’ attempt to acquire all of its outstanding shares. Bitfarms described this as an effort to undermine the integrity of the process and thwart the interest of third parties.

Shortly after the Canadian regulator terminated the first “poison pill,” Bitfarms quickly implemented another one to “ensure that all shareholders of the company are treated fairly and equally in connection with any unsolicited takeover bid.”

The second plan, called the “new rights plan,” includes protections against “creeping bids,” where an acquirer gradually accumulates 20% or more of the company’s common shares through purchases exempt from Canadian takeover bid rules. This plan will be effective for six months and allows current stockholders to buy shares at a significant discount to market price, thereby diluting any acquiring party’s stake if a takeover attempt triggers it.

In April, Riot Platforms proposed acquiring Bitfarms for $950 million. However, Riot later withdrew its proposal, citing an inability to engage with Bitfarms’ current board on a potential merger.

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