Riot sues Northern Data over Whinstone aquisition: Report

Bitcoin miner Riot has sued Northern Data over the Texas site it bought from that company last year, CoinDesk reported.

The lawsuit, filed on Sept. 7, claims that Northern Data did not disclose $ eighty-four million in liabilities to a 3rd birthday birthday celebration and that the German agency owes Riot $114 million, in keeping with CoinDesk. A clerk on the Court of Chancery Courthouse in Delaware showed the life of a lawsuit regarding the 2 companies, however failed to deliver any in additional details.

Riot announced in April of last year that it was buying Whinstone in a deal worth $651 million. Per the agreement, Riot would pay Northern Data $80 million in cash and the remainder in shares (around a 12% stake).

“Riot will wholly own the largest Bitcoin mining facility in North America, with very low power costs, and one of the most talented development teams in the industry,” Riot CEO then said. The company has since been expanding the site and expects to reach 400 megawatts by the first quarter of 2021, it said in August.

A spokesperson for Riot stated the organization had no remark at this time. Northern Data did now no longer straight away reply to a request for remark.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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