Business
Bit Digital, Inc. Announces Interruptions To Certain Hosting Partners' Operations
NEW YORK, May 19, 2022 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a bitcoin mining company headquartered in New York,
About this update from Bit Digital, Inc.
[{"type":"text","content":"NEW YORK, May 19, 2022 /PRNewswire/ -- Bit Digital, Inc. (Nasdaq: BTBT) (\"Bit Digital\" or the \"Company\"), a bitcoin mining company headquartered in New York, announced updates related to its hosting partners' operations.\nBit Digital management has recently been informed of two incidents affecting our hosting partners' operations.\nOur hosting partner Blockfusion USA, Inc. (\"Blockfusion\") advised us that the substation at its Niagara Falls, NY facility was damaged by an explosion and subsequent fire, and power was cut off to approximately 2,515 of our bitcoin miners and approximately 710 ETH miners that had been operating at the site immediately prior to the incident. There is not believed to have been any material damage to the mining center building or to the Company's miners. The explosion and fire are believed to have been caused by the power utility. Blockfusion and the 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. Operations are hoped to resume within a few weeks, but at this time there can be no assurances as to timing. Bit Digital management continues to monitor the situation and Blockfusion's pursuit of claims.\nOur hosting partner Digihost Technology Inc. (\"Digihost\") has advised us that a cut in power to its North Tonawanda, NY site has resulted in approximately 1,580 of our miners going offline, citing the need for additional approvals from the power authorities. Digihost has made the applications and expects initial feedback this month. Digihost also continues to await approval from the New York Public Service Commission in order to complete its acquisition of the site's 60MW power plant; at this time there can be no assurances as to timing. Bit Digital management continues to monitor the situation.\nWhile we are exploring various alternatives, the above-described incidents have resulted in an approximate 46.8% reduction to our operating hash rate. This is expected to have a material adverse effect on our operating results until such matters are resolved.\nAbout Bit Digital\nBit Digital, Inc. is a bitcoin mining company headquartered in New York City. Our mining operations are located in North America. For additional information, please contact [email protected] or visit our...