The Nasdaq-listed Bit Digital сообщилa announced the shutdown of a portion of its crypto-mining devices due to an incident at a substation in Niagara Falls, New York.
On May 10, at the Blockfusion facility, which offers hosting services for mining equipment, there was an explosion. According to Bit Digital, 2,515 Bitcoin miners and 710 Ethereum miners were shut down.
“The explosion and fire were reportedly caused by faulty equipment from the utility company. Blockfusion and Bit Digital intend to file lawsuits, including seeking compensation for lost profits,” the statement said.
Bit Digital representatives emphasised that no one was injured as a result of the incident, and the building and equipment did not suffer significant damage.
“We hope operations will resume within a few weeks, but there are currently no guarantees regarding timelines,” the company said.
Earlier, about 1,580 Bit Digital devices located in another part of the state were also shut down. Digihost Technology, the company hosting the equipment, said it needed additional approvals from authorities.
According to Bit Digital, the two incidents collectively reduced its hashrate by about 46.8%.
“This is expected to have a material negative impact on our operating results until the situation is resolved,” the statement said.
In Q4 2021 Bit Digital mined 240 BTC, while in the first three months mined 1013 BTC, and in the following period generated 592 BTC. The decline was the result of migration from China, the company noted.
As reported earlier, in spring 2022, Bit Digital deployed 39.2% of cryptocurrency mining installations in North America. As of March 15 the firm operated 10,462 Bitcoin miners and 712 Ethereum miners. The hash rate of the equipment stood at 0.511 EH/s and 0.188 TH/s respectively.
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