Northern Data’s head of finance calls whistleblowers “anonymous trolls” and says that the company is completely transparent.
European Bitcoin (BTC) mining firm Northern Data has seen its stock fall 40% in days amid claims that it committed fraud.
Data from Bloomberg showed the company’s NB2 stock trading at under €47 ($53.70) at the end of July 17, down from €79 ($90.30) on Monday.
Northern Data: “We’re as transparent as it gets”
Northern Data, the product of a 2019 merger between US company Whinstone and Northern Bitcoin, claimed to offer High Performance Computing/Artificial Intelligence (HPC/AI) solutions.
While touting the scale of its computing capacity to investors and analysts, including well-known German bank researchers, one critic in particular argued that in fact, the company was mostly involved in Bitcoin mining hosting.
For well-known investigative Twitter user BTCKING555, suspicions arose when Northern Data failed to respond to basic questions about its business.
Thereafter, a Medium post delivered a longer exposé, after which Northern Data hit mainstream media and its share price tumbled.
“It’s a very unpleasant point in time,” Maximilian Martin, head of finance at Northern Data, commented to the Financial Times.
“It gives the anonymous trolls a power of influence.