Riot Platforms Criticizes Bitfarms’ ‘Poison Pill’ Strategy, Cites Governance Concerns

Riot Platforms Criticizes Bitfarms’ ‘Poison Pill’ Strategy, Cites Governance Concerns

Riot Platforms has expressed strong disapproval of the “poison pill” strategy adopted by Bitfarms, asserting that it conflicts with established legal and governance standards. Despite this, Riot pledges to continue addressing what it deems serious corporate governance issues within Bitfarms.

In a June 12 press release, Riot Platforms highlighted that Bitfarms’ adoption of a Rights Plan, commonly referred to as a “poison pill,” is indicative of poor corporate governance. This defensive measure, designed to thwart takeover attempts, has drawn criticism from Riot, which argues that the move is contrary to good governance practices.

Riot Platforms’ Stance

Riot Platforms, headquartered in Colorado, emphasized its commitment to pushing for better governance at Bitfarms. CEO Jason Les underscored the importance of ensuring that shareholders have a say in the company’s future direction, suggesting that Bitfarms’ recent actions reflect underlying dissatisfaction within its board.

“We will continue to push to address the serious corporate governance issues at Bitfarms and ensure that shareholders have a say on the company’s path forward,” Les stated. He pointed out that Bitfarms’ decision to oust co-founder Emiliano Grodzki less than two weeks prior indicates significant internal discontent.

Bitfarms’ Defense

In response, Bitfarms defended its adoption of the Rights Plan, asserting that the board unanimously approved the measure to protect the integrity of its strategic alternatives review process. The company maintains that the plan serves the best interests of all its shareholders.

Details of the Rights Plan

The Rights Plan involves issuing additional shares to dilute the stake of any investor attempting to acquire more than 15% of the company. Riot Platforms, which currently holds 47,830,440 common shares (representing 11.62% of Bitfarms’ shares), has recently expressed its intention to acquire all of Bitfarms’ issued and outstanding common shares for $950 million.

Governance and Shareholder Interests

Riot Platforms argues that Bitfarms’ defensive strategy is a blatant disregard for good corporate governance, further complicating the dynamics between the two firms. As Riot continues its campaign, the dispute underscores the broader challenges and strategies within the competitive Bitcoin mining sector.


The ongoing tension between Riot Platforms and Bitfarms highlights the complexities of corporate governance in the cryptocurrency industry. While Bitfarms defends its actions as necessary for shareholder protection, Riot Platforms continues to challenge these measures, advocating for what it believes to be more transparent and fair governance practices.

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