Bitfarms is adopting a "poison pill" strategy to thwart a hostile takeover by Riot Platforms

ChainCatcher news, according to The Block, Bitcoin mining company Bitfarms is adopting a "poison pill" strategy to prevent acquisition by its peer and competitor Riot Platforms.

It is reported that the equity dilution anti-takeover measure, also known as the "poison pill plan," is a tactic used to prevent a company from being subjected to unsolicited acquisitions and to attempt to reduce its attractiveness. Bitfarms stated that the plan has been approved by the board and "is intended to maintain the integrity of its previously announced strategic alternative review process and is in the best interests of shareholders."

Previously, Riot Platforms has accumulated a 12% stake in Bitfarms over the past few weeks, aiming to build one of the largest Bitcoin mining companies in the world.