New York-headquartered crypto mining firm Bit Digital reported two of its hosting partners ceased operations to more than 4,800 rigs following power disruptions at different facilities.\u00a0<\/p>\n
In a Thursday announcement, Bit Digital said a substation in Niagara Falls was damaged by \u201can explosion and subsequent fire,\u201d necessitating its partner Blockfusion USA to take 2,515 Bitcoin (BTC) miners and 710 Ether (ETH) miners offline at the site. In addition, the mining firm reported its Digihost partner experienced a similar cut in power to a facility in North Tonawanda, New York, resulting in 1,580 crypto miners going offline. <\/p>\n
According to Bit Digital, the damage from the explosion and fire did not directly affect any mining rigs \u2014 just the substation providing electricity. In addition, the mining firm did not suggest any of its rigs were the cause of the accident, which was attributed to \u201cfaulty equipment owned by the power utility,\u201d and will be seeking reimbursement for the lost revenue from mining crypto.<\/p>\n
\u201cBlockfusion is working with its insurer and the utility to restore power as quickly as possible,\u201d said Bit Digital. \u201cOperations are hoped to resume within a few weeks, but at this time there can be no assurances as to timing.\u201d<\/p>\n
The mining company and its partners have six facilities across the United States, with three in New York and one each in Texas, Nebraska and Georgia. With the roughly 4,805 rigs offline, Bit Digital reported its operating hash rate had dropped 46.8%.<\/p>\n