Riot Platforms, a prominent Bitcoin miner, has retaliated against Bitfarms' defensive move to block a potential takeover bid. Bitfarms recently implemented a "poison pill" strategy, aimed at preventing any single shareholder from acquiring 15% or more of its shares, following Riot's announcement of its intent to increase its 12% stake in Bitfarms.

In response, Riot Platforms CEO Jason Les criticized Bitfarms' defensive stance, accusing the company of avoiding constructive engagement:

"Instead of engaging with us privately and in good faith, Bitfarms has responded by implementing an off-market Poison Pill with a trigger well below the customary 20% threshold," Les stated in a filing on Wednesday.

Over the past week, Riot Platforms purchased nearly 6 million shares of Bitfarms through open market transactions, raising its stake to 13.1%.

Riot's aggressive move follows its previous attempt to acquire all shares of Bitfarms for approximately $950 million, an offer that was rejected by Bitfarms. Neither company immediately responded to requests for comment from The Block.

The acquisition of a significant stake in a company provides investors with voting rights and influence over corporate decisions, including board appointments and executive changes. However, strategies like a "poison pill" can effectively deter hostile takeovers by diluting the aggressor's ownership.

The power struggle between Riot and Bitfarms occurs amidst internal unrest at Bitfarms, which saw the removal of CEO Geoffrey Morphy in May due to governance disputes. Riot Platforms sees this turbulence as an opportunity to address corporate governance issues within Bitfarms and ensure shareholder participation in future decisions.

Bitfarms' stock (ticker BITF) was trading at $2.45, reflecting a 7.8% increase at the time of publication.