Riot Blockchain Sues Northern Data Over Disclosures Related to Texas Bitcoin Mine Acquisition
Bitcoin miner Riot Blockchain (RIOT) is suing hosting firm Northern Data (NB2X:GER), alleging breach of contract and failure to disclose important information.
The lawsuit relates to the Texas Whinstone bitcoin mine, slated to be one of the world's largest by power capacity, which Riot acquired from Northern Data just last year for $651 million – $80 million cash and 11.8 million shares of Riot stock.
In the lawsuit filed on Sept. 7 in a Delaware court, Riot claims that Germany's Northern Data failed to disclose $84 million in liabilities to a third party, which the third party asked for in April of this year. At the time, Riot was trying to negotiate the final closing price for the acquisition but Northern Data "delayed and obfuscated," the lawsuit claims. Riot also says that Northern Data continues to stall negotiations and has delayed paying almost $114 million it owes to Riot.
Northern Data did not reply to CoinDesk's request for comment at the time of publication.
The Whinstone mine is entangled in a separate legal battle with one of its hosting clients, Japanese GMO Internet.
Read more: Texas Bitcoin Mine Whinstone Countersues Japan's GMO Internet, Seeks $15M Damages in Four-Year Dispute