Riot Blockchain Texasbased Bitcoin Whinstone 570m

Riot Blockchain Texasbased Bitcoin Whinstone 570m

riot blockchain texasbased bitcoin whinstone 570mraimondebloomberg

Page Contents

Bitcoin miner Riot Blockchain (RIOT) is suing hosting company Northern Data (NB2X:GER), alleging breach of contract and failure to disclose material information.

The lawsuit relates to the Texas Whinstone bitcoin mine, slated to be one of the world’s largest by power capacity, which Riot acquired from Northern Data last year for $651 million: $80 million in cash and 11.8 million shares of Riot.

In the lawsuit filed on September 7 in a Delaware court, Riot claims that Germany’s Northern Data failed to disclose $84 million in liabilities to a third party, which the third party requested in April of this year. At the time, Riot was trying to negotiate the final closing price of the acquisition, but Northern Data “delayed and obfuscated,” the lawsuit claims. Riot also says that Northern Data continues to stall negotiations and has delayed paying nearly $114 million it owes Riot.

“Northern Data rejects the claims made and management does not expect this matter to distract Northern Data from its overall business strategy,” said Jens-Philipp Briemle, head of investor relations at the German firm.

Briemle added that the lawsuit only seeks to “submit certain claims to an independent accountant for resolution” and is not seeking $114 million in damages.

The Whinstone mine is embroiled in a separate legal battle with one of its hosting clients, Japan’s GMO Internet.

Share on facebook
Share on google
Share on twitter
Share on linkedin
Share on pinterest