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 failed to disclose $84 million in liabilities to a third party and that the German company owes Riot $114 million, according to CoinDesk. A clerk at the Court of Chancery Courthouse in Delaware confirmed the existence of a lawsuit involving the two companies, but didn’t give any further 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 said the company had no comment at this time. Northern Data did not immediately respond to a request for comment.
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Author: Catarina Moura
