Riot Platforms has announced its commitment to addressing the corporate governance issues at Bitfarms, despite the recent adoption of a “poison pill” strategy by the Canadian Bitcoin mining firm. The Rights Plan, often referred to as a “poison pill,” was implemented by Bitfarms to safeguard against potential takeover attempts. However, Riot Platforms contends that this move conflicts with established legal and governance standards.

The Colorado-based Riot Platforms emphasized in its press release on June 12 that Bitfarms’ decision is a clear indication of the board of directors neglecting proper corporate governance. The company is determined to address these governance concerns and ensure shareholders have a voice in the company’s future direction.

“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.”

Jason Les, CEO of Riot Platforms

Les also highlighted that Bitfarms’ recent actions suggest internal dissatisfaction, pointing to the board’s decision to remove co-founder Emiliano Grodzki from his position less than two weeks ago.

In response, Bitfarms defended its decision through a press release, stating that the board unanimously approved the shareholder rights plan to maintain the integrity of its strategic alternatives review process. Bitfarms insists that the plan is in the best interests of all its shareholders.

As part of the Rights Plan, Bitfarms intends to issue additional shares to dilute an investor’s stake if any entity attempts to acquire 15% of the firm’s shares. Riot Platforms, which currently owns 47,830,440 common shares, equating to 11.62% of Bitfarms’ shares, has indicated its intention to purchase all of Bitfarms’ issued and outstanding common shares for $950 million.

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