Bitcoin Miner Bit Digital Hits Back at ‘False Accusations’ of Fraud

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Nasdaq- detailed bitcoin mining firm Bit Digital (BTBT) disregarded claims of fraud versus the firm made in a just recently released record by J Capital Research.

Without especially calling the record, a press release from the mining firm replied to “false accusations” concerning its company. It duplicated economic disclosures from Q3 2020 on the dimension as well as range of its procedures, keeping in mind that “an overview of our bitcoin mining operations” is all openly offered on the UNITED STATE Securities as well as Exchange Commission’s (SEC) site.

Among various other claims, the report from J Capital called Bit Digital’s filings, which revealed it runs almost 23,000 bitcoin mining makers in China, “simply a lie.”

In December, Bit Digital introduced a $13.9 million contract to purchase almost 18,000 Whatsminer as well as Antminer ASICs. Whatsminer maker MicroBT did not react to an ask for remark from CoinDesk.

J Capital additionally called Bit Digital a “sham bitcoin business,” declaring to have actually confirmed with regional Chinese federal government authorities that Bit Digital has “no bitcoin miners” there, casting question over the authenticity of its Asia- based mining procedures inChina

Bit Digital stated all of its landmass China mining procedures are taken care of by XMAX Hong Kong, as well as all “utility bills and other expenses” are paid to Hong Kong providers.

The firm’s supply skyrocketed over 400% in betweenDec 28, 2020, toJan 4, 2021, coming to a head over $32 as well as pressing the firm over a $1 billion market price. J Capital released its record one week in the futureJan 11. Since after that, Bit Digital shares have actually gone down over 35% to around $16.

Bit Digital replied to none of CoinDesk’s e-mails looking for remark. CoinDesk was additionally not able to speak to center supervisors of Bit Digital’s Asia- based mining procedures.

The firm additionally mines in the UNITED STATE, nonetheless. In Texas as well as Nebraska, Bit Digital has a complete of 2,100 makers in centers taken care of by Minnesota- based mining framework firmCompute North

Compute North Chief Executive Officer Dave Perrill informed CoinDesk his firm has constantly had a “very healthy partnership” with Bit Digital, validating the 2,000 makers in Nebraska as well as 100 in Texas that his firm takes care of.

On a call, Perrill stated his group is additionally “in talks about significantly scaling up operations” withBit Digital He stated he can not talk to his customer’s Asian mining centers.

Bit Digital began extracting bitcoin in February 2020.