14 Jun 24
 14 Jun 24
 14 Jun 24

EddieJayonCrypto

 11 Jun 24

tl;dr

Bitcoin mining firm Bitfarms has implemented a shareholder rights plan to protect against an unsolicited takeover bid from Riot Platforms. The plan, known as a "poison pill," aims to make such takeovers prohibitively expensive for the acquirer. It targets new common shares and triggers if an entity ...

Bitfarms, a Bitcoin mining firm, has implemented a shareholder rights plan to protect against an unsolicited takeover bid from Riot Platforms. The plan, known as a "poison pill," aims to make such takeovers prohibitively expensive for the acquirer. It targets new common shares and triggers if an entity acquires more than 15% of Bitfarms’ shares by September 10, 2024, or 20% after this date. The plan also allows existing shareholders to buy additional shares at a discount if an acquirer breaches the specified thresholds. The implementation of the plan depends on approval from both Bitfarms’ shareholders and the Toronto Stock Exchange.

Bitfarms’ stock price dropped 4.17% on the Nasdaq following the announcement of the rights plan, while Riot Platforms’ stock price increased by 1.8%. Over the past 30 days, Bitfarms’ stock price rose by 44.65%, compared to Riot’s 4.16% gain.

Bitfarms’ strategy, known as a “poison pill,” aims to prevent hostile takeovers by making such deals prohibitively expensive for the acquirer. This tactic ensures Bitfarms can continue its strategic review process without disruption, exploring options like business combinations, strategic transactions, or a potential sale.

The rights plan targets all new common shares and triggers if an entity acquires more than 15% of Bitfarms’ shares by September 10, 2024, or 20% after this date, without adhering to the plan. This rights plan enables Riot to make a compliant takeover offer under Canadian securities laws. It also protects existing shareholders, allowing them to buy additional shares at a discount if an acquirer breaches the specified thresholds. The plan’s implementation depends on approval from both Bitfarms’ shareholders and the Toronto Stock Exchange.

Riot Platforms made an unsolicited $950 million offer in May to acquire Bitfarms, which was about 20% above Bitfarms’ trading price before the offer. As of June 5, Riot currently owns approximately 11.62% of Bitfarms’ issued and outstanding stock.

Following the announcement of the rights plan, Bitfarms’ stock price (BITF) on the Nasdaq dropped 4.17% in the last 24 hours, while Riot Platforms’ (RIOT) stock price increased by 1.8%. Over the past 30 days, however, Bitfarms’ stock price rose by 44.65%, compared to Riot’s 4.16% gain.

More about Bitfarms Ltd

Bitfarms Ltd - Technical Analysis Summary

Bitfarms Ltd operates in the technology sector, specifically in computer programming, data processing, and related services.

Key Data:

- Relative Strength Index (RSI): -0.4

- Moving Averages: 0.577 (positive)

- Bollinger Bands: -0.638

- Trading Volume: 166,633,000

- Stock Price: $3.79

- Support and Resistance Levels: $0 (support), $0.674 (resistance)

More about Riot Blockchain Inc

Riot Blockchain Inc,Riot Blockchain, Inc., focuses on the cryptocurrency mining operation in North America. The company is headquartered in Castle Rock, Colorado.,LIFE SCIENCES,IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES,2857528000,23.56,None,0.42,1.448,0.501,286738000,17.86,6.36,0.083

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