Nasdaq-listed bitcoin mining firm Bit Digital (BTBT) dismissed allegations of fraud towards the corporate made in a just lately printed report by J Capital Analysis.
With out particularly naming the report, a press release from the mining firm responded to “false accusations” about its enterprise. It repeated monetary disclosures from Q3 2020 on the dimensions and scale of its operations, noting that “an summary of our bitcoin mining operations” is all publicly obtainable on the U.S. Securities and Alternate Fee’s (SEC) web site.
Amongst different allegations, the report from J Capital referred to as Bit Digital’s filings, which confirmed it operates practically 23,000 bitcoin mining machines in China, “merely a lie.”
In December, Bit Digital introduced a $13.9 million settlement to purchase practically 18,000 Whatsminer and Antminer ASICs. Whatsminer producer MicroBT didn’t reply to a request for remark from CoinDesk.
J Capital additionally referred to as Bit Digital a “sham bitcoin enterprise,” claiming to have verified with native Chinese language authorities officers that Bit Digital has “no bitcoin miners” there, casting doubt over the legitimacy of its Asia-based mining operations in China.
Bit Digital mentioned all of its mainland China mining operations are managed by XMAX Hong Kong, and all “utility payments and different bills” are paid to Hong Kong suppliers.
The corporate’s inventory soared over 400% between Dec. 28, 2020, to Jan. 4, 2021, peaking above $32 and pushing the corporate above a $1 billion market worth. J Capital printed its report one week in a while Jan. 11. Since then, Bit Digital shares have dropped over 35% to round $16.
Bit Digital responded to none of CoinDesk’s emails in search of remark. CoinDesk was additionally unable to contact facility managers of Bit Digital’s Asia-based mining operations.
The corporate additionally mines within the U.S., nonetheless. In Texas and Nebraska, Bit Digital owns a complete of two,100 machines in services managed by Minnesota-based mining infrastructure firm Compute North.
Compute North CEO Dave Perrill instructed CoinDesk his firm has all the time had a “very wholesome partnership” with Bit Digital, confirming the two,000 machines in Nebraska and 100 in Texas that his firm manages.
On a telephone name, Perrill mentioned his staff can be “in talks about considerably scaling up operations” with Bit Digital. He mentioned he couldn’t communicate to his consumer’s Asian mining services.
Bit Digital began mining bitcoin in February 2020.