This is the second lawsuit related to the Texas mega mine that Riot acquired last year.Read MoreCoinDesk
Bitcoin miner Riot Blockchain (RIOT) is suing hosting firm Northern Data (NB2X:GER), alleging breach of contract and failure to disclose important 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 just last year for $651 million – $80 million cash and 11.8 million shares of Riot stock.
In the lawsuit filed on Sept. 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 asked for in April of this year. At the time, Riot was trying to negotiate the final closing price for 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 almost $114 million it owes to Riot.
Northern Data did not reply to CoinDesk’s request for comment at the time of publication.
The Whinstone mine is entangled in a separate legal battle with one of its hosting clients, Japanese GMO Internet.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
In the last week, Bitcoin has shown much resilience bouncing back above the $60,000 zone…
Crypto research platform 10x Research recently noted that the Bitcoin Relative Strength has jumped to…
Bitcoin is now at a critical junction, which many determine its price trajectory for the…
Arthur Hayes, the co-founder and former CEO of BitMEX, recently shared his thoughts on the…
The Bitcoin price made a strong comeback on Friday after witnessing a significant amount of…
GBTC, the biggest spot bitcoin ETF, has seen its assets under management lead over BlackRock's…