YORK, Oct. 7, 2022 /PRNewswire/ -- Bit
Digital, Inc. (Nasdaq: BTBT) ("Bit Digital" or the "Company"), a
digital asset mining company headquartered in New York, announced updates related to its
hosting partner's operations.
Bit Digital received a notice (the "Notice") dated October 4, 2022, from the City of Niagara Falls, New York. The Notice
pertained to a Niagara Falls, NY
facility that is owned and operated by one of the Company's hosting
partners, Blockfusion USA Inc.
("Blockfusion"). The Notice orders the cease and desist from any
cryptocurrency mining or related operations at the facility until
such time as Blockfusion complies with Section 1303.2.8 of the City
of Niagara Falls Zoning Ordinance (the "Ordinance"), in addition to
all other City ordinances and codes. Power had been restored at
this facility in September following the previously announced
explosion and fire in May 2022.
Blockfusion has advised the Company that the Ordinance came into
practical effect on October 1, 2022,
following the expiration of a related moratorium on September 30, 2022. Blockfusion has further
advised that it is preparing applications for new permits based on
the Ordinance's new standards and that the permits may take several
months to process. Bit Digital management continues to monitor the
Pursuant to the Mining Services Agreement between Bit Digital
and Blockfusion dated August 25,
2021, Blockfusion represents, warrants, and covenants that
it "possesses, and will maintain, all licenses, registrations,
authorizations and approvals required by any governmental agency,
regulatory authority or other party necessary for it to operate its
business and engage in the business relating to its provision of
the Services." On October 5, 2022,
Bit Digital further noticed Blockfusion that it expects it to
comply with directives of the Notice.
Approximately 17% of the Company's total active mining fleet is
currently located at the Blockfusion facility in Niagara Falls. As of October 6, 2022, the Company had a total of
13,980 mining units actively hashing.
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
email@example.com 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 October 2022. See "Safe Harbor Statement"
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.
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SOURCE Bit Digital, Inc.