Bitfarms, a Toronto-based powerhouse in the realm of Bitcoin mining, has recently embarked on a strategic maneuver to fortify its position against potential takeover bids orchestrated by Riot Platforms. This proactive step, unveiled through a press release on June 10th, underscores Bitfarms' commitment to preserving the integrity of its ongoing strategic review process.

In response to Riot Platforms' overtures, Bitfarms' board of directors, with unanimous consent, has greenlit the adoption of a shareholder rights plan, colloquially known as a "poison pill." This plan, meticulously crafted, serves as a bulwark shielding the interests of Bitfarms' shareholders from any adversarial advances.

The genesis of this defensive stance lies in Riot Platforms' recent bid to acquire all outstanding common shares of Bitfarms for a staggering $950 million. With a substantial stake already in its possession, amounting to 11.62% of Bitfarms' shares, Riot Platforms is poised to wield significant influence. Furthermore, Riot Platforms has signaled its intent to bypass Bitfarms' review process by requisitioning a special meeting of shareholders, prompting Bitfarms to mobilize its defenses.

Bitfarms' specialized committee, tasked with evaluating strategic alternatives, has meticulously scrutinized Riot's proposal and concluded that it grossly undervalues the company and its future growth trajectory. Despite extending an invitation for Riot Platforms to actively participate in the review process, Bitfarms was met with reluctance, further solidifying its resolve to enact protective measures.

The crux of Bitfarms' defense lies in the intricacies of the Rights Plan, meticulously designed to thwart any hostile incursions. By setting a threshold of 15% share accumulation, the plan aims to deter immediate threats to the ongoing review process. Commencing June 20th, each common share will be accompanied by a right, poised to be exercised should any entity or related parties amass 15% or more of the outstanding shares before September 10th, with adjusted thresholds thereafter.

However, the fortification of Bitfarms' defenses necessitates further steps. The ratification of the Rights Plan by shareholders within six months, coupled with approval from the Toronto Stock Exchange, stands as pivotal prerequisites. Furthermore, the acceptance of these measures may encounter delays pending regulatory scrutiny and satisfaction from relevant securities commissions.

In essence, Bitfarms' strategic maneuver exemplifies its unwavering commitment to safeguarding shareholder interests and preserving the sanctity of its strategic review process amidst turbulent waters of corporate maneuvering and potential takeover bids.