New York-based cryptocurrency mining company, Bit Digital reported that two of its hosting partners ceased operations of more than 4,800 computers following power outages at different facilities.
In an announcement on Thursday, Bit Digital said a substation in Niagara Falls was damaged by “an explosion and subsequent fire,” forcing its partner Blockfusion USA to take 2,515 Bitcoin (BTC) and 710 Ether (ETH) miners offline at the site. . Additionally, the mining company reported that its partner Digihost experienced a similar power outage at a facility in North Tonawanda, New York, causing 1,580 cryptocurrency miners to go offline.
According to Digital Bit, the damage caused by the explosion and the fire did not directly affect any mining equipment, but only the substation that supplied electricity. Furthermore, the mining company did not suggest that any of its rigs were the cause of the accident, attributed to “faulty equipment owned by the power company,” and will seek reimbursement for lost revenue from cryptocurrency mining.
“Blockfusion is working with your insurer and utility company to restore power as quickly as possible,” BitDigital said. “Operations are expected to resume in a few weeks, but timing cannot be assured at this time.”
The mining company and its partners have six facilities in the United States, three in New York, one in Texas, one in Nebraska and one in Georgia. With the approximately 4,805 rigs out of service, Bit Digital reported that its operational hash rate had dropped by 46.8%.
Shares of Nasdaq-traded Bit Digital have fallen more than 6% in the past 24 hours, to as low as $1.59 at the time of publishing this story. The company has taken steps to have greener operations, reporting that 67% of its energy for mining comes from renewable sources.
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