Bit Digital : Alleged Termination of a Definitive Agreement - Form 6-K

Alleged Termination of a Definitive Agreement

On January 7, 2023, Bit Digital USA, Inc. (the "Company") received a purported termination notice from the assignee operating companies of Compute North, LLC ("CN"), affiliated with Generate Capital, PBC. Each of GC Data Center Kearney, LLC and GC Data Center Granbury, LLC (collectively, "Generate"), bitcoin mining data centers located in Kearney, Nebraska and Wolf Hollow, Texas, claimed to have provided written notice of termination of the Master Agreement dated September 9, 2020, by and between the Company and CN. The Master Agreement and all order forms issued thereunder were claimed to have been assigned to Generate prior to CN's filing for bankruptcy protection. Generate claims that it has the right to terminate the Master Agreement for alleged "uncured failure to make" certain "payments." The Company has disputed the propriety of the termination and is attempting to resolve the dispute with Generate. As of the date of this filing, the Company's miners continue to operate.

In the event that the Company is unable to resolve this dispute, the Company expects that such termination would have a material adverse effect on its business and financial condition.