Riot Platforms has expressed strong opposition to the adoption of a "poison pill" by Bitfarms, labeling it as contradictory to established legal and governance norms. The Rights Plan, implemented by Bitfarms, aims to safeguard against hostile takeovers but has sparked controversy for its implications on shareholder rights and corporate governance standards.

In a press release dated June 12, Riot Platforms, headquartered in Colorado, criticized Bitfarms' decision, citing it as evidence of the board's disregard for sound corporate governance practices. The company emphasized its commitment to addressing what it perceives as significant governance deficiencies within Bitfarms, asserting its determination to ensure shareholders have a meaningful voice in shaping the company's future direction.

Jason Les, CEO of Riot Platforms, underscored the seriousness of the situation, highlighting recent board actions such as the removal of Bitfarms' co-founder Emiliano Grodzki less than two weeks prior. Les characterized these developments as indicative of internal discord within Bitfarms.

In response, Bitfarms defended its adoption of the Rights Plan through a separate press release, justifying it as a measure to uphold the integrity of ongoing strategic reviews. The company stated that the plan, designed to prevent any single entity from accumulating a significant stake without approval, serves the best interests of all shareholders.

According to the terms of the Rights Plan, Bitfarms intends to issue additional shares to dilute the ownership of any entity attempting to acquire 15% or more of its shares. Riot Platforms, currently holding approximately 11.62% of Bitfarms' shares, has publicly expressed its intention to acquire the entirety of Bitfarms for $950 million, signaling a potentially contentious shareholder battle ahead.

The clash between Riot Platforms and Bitfarms underscores broader concerns within the cryptocurrency mining sector regarding corporate governance, shareholder rights, and strategic direction. As the situation unfolds, stakeholders will closely watch developments to see how these competing interests reconcile amidst the rapidly evolving landscape of digital asset markets.