Other Events-Update on Generate Capital Hosting Sites

On January 23, 2023, Bit Digital USA, Inc. (the "Company") and Generate Capital, PBC ("Generate") entered into a litigation standstill agreement (the "Standstill Agreement") regarding the disputed notice of termination of the Master Agreement (the "MA") dated September 9, 2020, by and between the Company and Compute North, LLC ("CN").

As previously announced, on January 7, 2023, the Company received from Generate a purported notice of termination of the MA. The Company has disputed the propriety of the purported termination and is attempting to resolve the dispute with Generate. On January 20, 2023, Generate cut power to the Company's miners.

Pursuant to the Standstill Agreement, Generate agreed to immediately restore power to the Company's miners for the next ten days. Bit Digital agreed to immediately wire $350,000 to Generate to be applied first, prospectively, to cover the next ten days' worth of operations, and second, retrospectively to cover monies Generate claims that Bit Digital owes it for the month of January 2023. As of the date of this filing, power has been restored and the Company's miners have resumed operation.

As previously disclosed, in the event that the Company is unable to resolve the dispute with Generate, the Company expects that termination of the MA would have a material adverse effect on its business and financial condition.

Attachments

Disclaimer

Bit Digital Inc. published this content on 25 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2023 11:07:06 UTC.