Bitfarms adopts second 'poison pill' after Canadian tribunal terminates first

(Reuters) -Bitcoin miner Bitfarms said on Wednesday it adopted a second 'poison pill' after a Canadian tribunal ceased the earlier one adopted to fend off a potential hostile takeover attempt by rival Riot Platforms.

The new 'poison pill', known as the shareholders rights plan, will trigger when against "creepy" bids accumulating more than 20% of the Bitfarms' common shares, the Canadian company said. The threshold was earlier set at 15%.

The new plan will be effective for six months, Bitfarms said, adding that a trigger would allow current stockholders to buy shares at a significant discount to the market price, diluting its stake.

Earlier in the day, Riot announced the Ontario Capital Markets Tribunal's decision to cease Bitfarms' first 'poison pill'.

Riot disclosed a 12% stake in Bitfarms in June, and the latter rebuffed its $950 million offer, citing the bid undervalued the company. Bitfarms adopted a "poison pill" to fend off a hostile takeover.

Riot had said it intended to request a special shareholder meeting to add independent directors to Bitfarms' board.

Bitfarms said on Wednesday its new rights plan allows Riot to proceed with its three nominations to the board - John Delaney, Amy Freedman and Ralph Goehring - and solicit proxies in respect of the board meeting due in October.

(Reporting by Gnaneshwar Rajan, Surbhi Misra and Shubham Kalia in Bengaluru; Editing by Alan Barona and Sherry Jacob-Phillips)

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