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'
Bit Digital management has recently been informed of two
incidents affecting our hosting partners' operations.
Our 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.
Our 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
While 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
About Bit Digital
Bit 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
firstname.lastname@example.org or visit our website
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 fiscal year ended December 31, 2021. If any material risk was to
occur, our business, financial condition or results of operations
would likely suffer. In that event, the value of our securities
could decline and you could lose part or all of your investment.
The risks and uncertainties we describe are not the only ones
facing us. Additional risks not presently known to us or that we
currently deem immaterial may also impair our business operations.
In addition, our past financial performance may not be a reliable
indicator of future performance, and historical trends should not
be used to anticipate results in the future. Future changes in the
network-wide mining difficulty rate or bitcoin hash rate may also
materially affect the future performance of Bit Digital's
production of bitcoin. Actual operating results will vary depending
on many factors including network difficulty rate, total hash rate
of the network, the operations of our facilities, the status of our
miners, and other factors. Additionally, all discussions of
financial metrics assume mining difficulty rates as of 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
subsidiary companies. 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
do involve assumptions, risks and uncertainties, and these
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 as a result of 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 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.
Other than as required under the securities laws, the Company does
not assume a duty to update these forward-looking statements.
For more information, please contact: email@example.com, +1
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SOURCE Bit Digital, Inc.