BIT DIGITAL, INC.

BTBT
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Bit Digital Shares Rise 8% Despite Incidents Affecting Hosting Partners

05/19/2022 | 12:46pm

By Chris Wack


Bit Digital Inc. up 8% to $1.80 after the company said it has recently been informed of two incidents affecting its hosting partners' operations.

The bitcoin mining company said hosting partner Blockfusion USA Inc. advised it that the substation at its Niagara Falls, N.Y., facility was damaged by an explosion and subsequent fire, and power was cut off to 2,515 bitcoin miners and 710 ethereum miners that had been operating at the site immediately prior to the incident.

There isn't 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 Bit Digital 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.

Hosting partner Digihost Technology Inc. has advised Bit Digital that a cut in power to its North Tonawanda, N.Y., site has resulted in 1,580 miners going offline, citing the need for additional approvals from the power authorities.

Bit Digital said the two incidents have resulted in a 46.8% reduction to its operating hash rate, which is expected to have a material adverse effect on its operating results until such matters are resolved.

Bitcoin was at $30,288.48, up 5% in the last 24 hours. Ethereum was at $2,020.59, up 4% in the past 24 hours.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

05-19-22 1245ET

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