Bitfarms Ltd. has enacted a shareholder rights plan to safeguard its ongoing Strategic Alternatives Review Process, aiming to thwart potential hostile takeovers.

The plan, unanimously endorsed by the Board, grants shareholders rights to deter unwanted acquisitions, in response to Riot Platforms Inc.'s unsolicited bid to acquire all Bitfarms shares.

Despite owning 11.62% of Bitfarms, Riot's proposal was deemed undervalued and rejected by the Special Committee overseeing the process.

The rights plan imposes restrictions on acquisitions exceeding 15% of shares, ensuring fair assessment of strategic options, subject to shareholder ratification within six months and approval from the Toronto Stock Exchange.