07:49 AM EDT, 06/10/2024 (MT Newswires) -- Bitfarms ( BITF ) said Monday its board of directors has unanimously approved a shareholder rights plan, intended to protect the integrity of its ongoing strategic alternatives review process and counter Riot Platforms' share accumulation.

The plan, established with TSX Trust, will issue one right per common share, to be activated if any party acquires 15% or more of the shares without adhering to "Permitted Bid" provisions, the company said. The rights plan will be effective June 20.

The move comes in response to Riot Platforms's recent accumulation of shares, following an unsolicited acquisition proposal, the company said. Riot recently increased its holdings in Bitfarms ( BITF ) from 14.8 million shares, or a 3.61% stake, to 47.8 million shares, or an 11.62% stake, prompting the company to adopt the shareholder rights plan to prevent Riot from gaining a controlling interest without complying with the "Permitted Bid" provisions.

Shares of the company were down nearly 3% in recent Monday premarket activity.

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