SAN DIEGO & NEW YORK--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP announces that a purchaser of Bit Digital, Inc. (NASDAQ: BTBT) filed a class action complaint against the Company and its officers and directors for alleged violations of the Securities Exchange Act of 1934 between December 21, 2020 and January 11, 2021. Bit Digital is a holding company that purportedly engages in the bitcoin mining business through its wholly owned subsidiaries in the U.S. and Hong Kong.
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Bit Digital, Inc. (BTBT) Misled Shareholders About Its Bitcoin Mining Operations
According to the complaint, on December 21, 2020, Bit Digital announced its revised financial results for the third quarter 2020. The Company indicated that its "number of miners was 22,869, with 16,865 miners acquired in the third quarter 2020." However, Bit Digital overstated the extent of it bitcoin mining operation.
On July 11, 201, analyst J Capital Research issued a report alleging that Bit Digital operates "a fake crypto currency business" "designed to steal funds from investors." Although the Company claims "it was operating 22,869 bitcoin miners in China," J Capitl alleged that this "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." On this news, the price of Bit Digital shares fell $6.27, or 25%, to close at $18.76 per share on January 11, 2021. The stock has yet to recover.
If you purchased shares of Bit Digital, Inc. (BTBT) between December 21, 2020 and January 11, 2021, you have until March 22, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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