NEW YORK, May 19, 2022 /PRNewswire/ — Bit Digital, Inc. (Nasdaq: BTBT) (“Bit Digital” or the “Company”), a bitcoin mining company headquartered in New Yorkannounced updates regarding the operations of its hosting partners.
Bit Digital management has recently been made aware of two incidents affecting the operations of our hosting partners.
Our hosting partner Blockfusion UNITED STATESInc. (“Blockfusion”) has informed us that the substation at its Niagara Falls, New York the facility was damaged by an explosion and subsequent fire, and power was cut for approximately 2,515 of our bitcoin miners and approximately 710 ETH miners who operated on site immediately prior to the incident. It is not believed that there was any property damage to the mining center building or to the Company’s miners. The explosion and the fire would have been caused by the electric utility. Blockfusion and Company intend to pursue claims, including seeking reimbursement for lost revenue. Blockfusion is working with its insurer and National Grid to restore power as quickly as possible. It is hoped that operations will resume in a few weeks, but at this time there is no assurance as to the timeline. Bit Digital management continues to monitor the situation and the continuation of claims by Blockfusion.
Our hosting partner Digihost Technology Inc. (“Digihost”) informed us that a power outage to their North Tonawanda, New York resulted in approximately 1,580 of our miners being taken offline, citing the need for additional approvals from the authorities of power. Digihost has made the requests and expects the first feedback this month. Digihost also continues to await approval from the New York Public Service Commission to complete its acquisition of the site’s 60 MW power plant; at this time, there can be no guarantees as to timing. Bit Digital management continues to monitor the situation.
As we explore various alternatives, the incidents described above have resulted in a reduction of approximately 46.8% in our operational hash rate. This is expected to have a material adverse effect on our results of operations until these matters are resolved.
About Bit Digital
Bit Digital, Inc. is a bitcoin mining company headquartered in New York City. Our mining operations are located at North America. For more information, please contact [email protected] or visit our website at www.bit-digital.com.
Notice to Investors
Investing in our securities involves a high degree of risk. Before making an investment decision, you should carefully consider the risks, uncertainties and forward-looking statements described under “Risk Factors” in Item 3.D of our most recent Annual Report on Form 20-F for the financial year ended. December 31, 2021. If a material risk were to arise, our business, financial condition or results of operations would likely be adversely affected. In this case, the value of our securities could fall and you could lose part or all of your investment. The risks and uncertainties we describe are not the only ones we face. Additional risks not currently known to us or that we currently deem to be immaterial may also adversely affect our business operations. Additionally, our past financial performance may not be a reliable indicator of future performance, and historical trends should not be used to predict future results. Future changes in the network-wide mining difficulty rate or bitcoin hash rate could also significantly affect the future performance of Bit Digital’s bitcoin production. Actual operating results will vary based on many factors, including network difficulty rating, total network hash rate, operations of our facilities, status of our miners and other factors. Additionally, all discussions of financial metrics assume mining difficulty rates from May 2022. See “Safe Harbor Statement” below.
Safe Harbor Statement
This press release may contain certain “forward-looking statements” relating to the business of Bit Digital, Inc. and its subsidiaries. All statements, other than statements of historical fact included herein, are “forward-looking statements”. These forward-looking statements are often identified by the use of forward-looking terminology such as “believes”, “expects” or similar expressions, involving known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they involve assumptions, risks and uncertainties, and such expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements due to a variety of factors, including those discussed in the Company’s periodic reports that are filed with the Securities and Exchange Commission and available on its website at the address http: //www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Except as required by securities laws, the Company undertakes no obligation to update these forward-looking statements.
For more information please contact: [email protected]+1 (212) 463-5121
SOURCEBit Digital, Inc.