02:51 PM EDT, 07/25/2024 (MT Newswires) -- Bitfarms ( BITF ) said late Wednesday its board has approved the adoption of a new shareholder rights plan after a Canadian tribunal terminated its previous plan as rival Riot Platforms ( RIOT ) seeks to replace three Bitfarms ( BITF ) directors with its nominees.

The Capital Markets Tribunal of the Ontario Securities Commission decided to cease trade the company's shareholder rights plan

following hearings on July 22 and July 23, the company said.

"In light of this decision, the Bitfarms Board has adopted the New Rights Plan to ensure the interests of all shareholders are protected," the company said. The new plan includes the protection against "creeping bids," which involve the accumulation of 20% or more of its shares through purchases exempt from applicable Canadian take-over bid rules.

Bitffarms said the new plan is not in response to any specific proposal to acquire control of the company, but it is aware of Riot's plan to replace three Bitfarms ( BITF ) directors at its Oct. 29 special meeting.

Late Wednesday, Riot said it was successful in its application to the Ontario Capital Markets Tribunal, resulting in the termination of the plan, which contemplated a 15% trigger.

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