Bitcoin miner Bitfarms (NASDAQ:BITF) announced on Monday that it has adopted a "poison pill" strategy to prevent a potential hostile takeover by rival Riot Platforms (NASDAQ:RIOT).

This defensive measure follows Riot Platforms' recent disclosure of a 12% stake in Bitfarms as part of its takeover attempt.

Last month, Riot Platforms made an offer to acquire Bitfarms for approximately $950 million.

In response, Bitfarms has implemented a shareholder rights plan to protect the integrity of its ongoing strategic alternatives review process.

The poison pill plan is a common tactic used by corporate boards to deter unsolicited takeover bids.

According to Bitfarms' plan, if any entity accumulates more than 15% of Bitfarms' stake between June 20 and September 10, the company will issue new shares, thereby diluting the entity's holdings.

After September 10, the threshold will be relaxed to 20%, provided that any takeover attempt meets specific conditions.