Bitcoin miner Bitfarms is adopting a "poison pill" to prevent possible takeover from peer and rival Riot Platforms.

"Under Bitfarm's plan, if an entity accumulates more than 15% of Bitfarms' stake after June 20 and up to Sept. 10, the company would issue fresh shares, diluting the entity's stake," according to Reuters. "After Sept. 10, the threshold would be relaxed to 20% if any takeover attempt meets certain conditions."

Bitfarms said the plan, approved by the board of directors, "is being adopted to preserve the integrity of our previously announced strategic alternatives review process and is in the best interests of shareholders."

A shareholder rights plan, also known as a "poison pill," is a company’s defense against an unsolicited takeover and attempts to make the company less …