Bitfarms Ltd (NASDAQ:BITF) shares are trading lower. The company on Monday announced the adoption of a shareholder rights plan amid a recent takeover initiative from Bitcoin (CRYPTO: BTC) miner Riot Platforms.
What To Know: Bitfarms on Monday said its board unanimously approved a shareholder rights plan aimed at preserving the integrity of its previously announced strategic alternatives review process.
Bitfarms previously initiated a strategic alternatives review process to consider continuing to execute on the company’s business plan, a business combination or other strategic transaction or a sale of the company following a takeover attempt from Riot Platforms Inc (NASDAQ:RIOT).
The special committee ultimately determined that Riot’s offer “significantly undervalued” the company. The shareholder rights plan announcement comes a day after Riot announced that it had built a 12% stake in Bitfarms as it continues to pursue a potential takeover.
Under terms of the new plan, if Riot or another entity builds a stake of more than 15% in the company between June 20 and Sept. 10, Bitfarms will issue new shares, diluting the stake of Riot or other entity pursuing a hostile takeover.
See Also: Will Bitcoin ‘Swipe The Low’ Ahead Of Wednesday’s FOMC Meeting?
BITF Price Action: Bitfarms shares were down 5.42% at $2.27 at the time of publication, according to Benzinga Pro.
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