January 20, 2021 - An investor in shares of Bit Digital, Inc. (NASDAQ: BTBT) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Bit Digital, Inc. in connection with certain allegedly false and misleading statements made between December 21, 2020 and January 8, 2021.
Flushing, NY based Bit Digital, Inc. engages in the bitcoin mining business. Bit Digital, Inc. Reported that its annual Total Revenue declined from $7.88 million in 2018 to $4.57 million in 2019 and that its normalized Loss increased from $3.42 million in 2018 to $9.47 million in 2019.
On January 11, 2021, a research report was issued alleging, among other things, that Bit Digital operates a fake crypto currency business designed to steal funds from investors. Though the Company claims it was operating 22,869 bitcoin miners in China, J Capital alleged that is simply not possible and stated that [w]e verified with local governments supposedly hosting the BTBT mining operation that there are no bitcoin miners there. Shares of Bit Digital, Inc. (NASDAQ: BTBT) declined from $33.00 per share on January 4, 2021, to as low as $14.70 per share on January 19, 2021. According to the complaint the plaintiff alleges on behalf of purchasers of Bit Digital, Inc. (NASDAQ: BTBT) common shares between December 21, 2020 and January 8, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between December 21, 2020 and January 8, 2021, the defendants made false and/or misleading statements and/or failed to disclose that Bit Digital overstated the extent of its a bitcoin mining operation, and that as a result, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.