The judge ruled that Bitfarms must immediately terminate its "poison pill" strategy aimed at opposing Riot Platforms' acquisition

ChainCatcher news, the encrypted mining company Riot Platforms stated in a declaration on July 24 that the Ontario Capital Markets Tribunal issued a cease trading order on Bitfarms' poison pill plan, immediately terminating the strategy.

Since June 13, Bitfarms has been opposing Riot Platforms' $950 million acquisition offer, claiming that Riot unfairly undervalued the company. The company adopted a poison pill strategy known as a "rights plan" to attempt to block the acquisition.

Poison pill strategies are typically used by companies to prevent hostile takeovers. Under this strategy, existing shareholders purchase additional shares at a significant discount, diluting the value of the shares held by the acquirer. According to Bitfarms' now-defunct rights plan, if any entity acquires more than 15% of the company's outstanding shares before September 10, Bitfarms will issue new shares to other existing shareholders, thereby reducing that entity's ownership.