Bit Digital (BTBT), a bitcoin mining company listed on the Nasdaq, has dismissed fraud allegations against the company made in a report recently released by J Capital Research.
Without specifically naming the report, a press release from the mining company responded to “false accusations” about its activity. It reiterated the third quarter 2020 financial disclosures on the size and scope of its operations, noting that “an overview of our bitcoin mining operations” is publicly available on the Securities and Exchange Commission website. (SEC) of the United States.
Among other allegations, the J Capital report called Bit Digital’s deposits, which showed it operated nearly 23,000 bitcoin mining machines in China, “just a lie.”
In December, Bit Digital announced a $ 13.9 million deal to purchase nearly 18,000 Whatsminer and Antminer ASICs. Whatsminer maker MicroBT did not respond to a request for comment from CoinDesk.
J Capital also called Bit Digital a “bogus bitcoin company”, claiming to have checked with local Chinese government officials that Bit Digital were “no bitcoin miners”, casting doubt on the legitimacy of its mining operations. based in Asia in China.
Bit Digital said all of its mining operations in mainland China are handled by XMAX Hong Kong, and all “utility bills and other expenses” are paid to suppliers in Hong Kong.
Shares of the company climbed more than 400% between December 28, 2020 and January 4, 2021, peaking above $ 32 and pushing the company above a market value of $ 1 billion . J Capital released its report a week later on January 11. Since then, Bit Digital shares have fallen more than 35% to around $ 16.
Bit Digital did not respond to any of CoinDesk’s emails requesting comment. CoinDesk was also unable to contact facility managers for Bit Digital’s mining operations in Asia.
However, the company also operates in the United States. In Texas and Nebraska, Bit Digital has a total of 2,100 machines in facilities operated by Minnesota mining infrastructure company Compute North.
Compute North CEO Dave Perrill told CoinDesk that his company has always had a “very healthy partnership” with Bit Digital, confirming the 2,000 machines in Nebraska and 100 in Texas that his company manages.
In a phone call, Perrill said his team was also “in talks to significantly scale up operations” with Bit Digital. He said he couldn’t talk to his client’s Asian mining facilities.
Bit Digital began mining Bitcoin in February 2020.