Bit Digital, a cryptocurrency mining company with its headquarters in New York, had issues with mining last week. This occurred after two of its hosting partners stopped their mining operations. Over 4,800 machines seized operations after the power outage in two locations.
Explosion Destroys Two Crypto Mining Substations
An “explosion and ensuing fire” caused damage to a substation in Niagara Falls. As a result of the destruction, the company’s partner, Blockfusion USA, was forced to shut down its operation. According to the company, over 710 Ethereum miners and 2,515 Bitcoin miners at the facility were affected.
Another partner that witnessed a similar occurrence is Digihost. The mining firm located in North Tonawanda had a power outage. The company is taking steps to ensure power is restored. Unfortunately, over 1,580 crypto miners have seized operation.
The corporation stated that;
“We would fight to get compensation for the funds that have been lost. We believe that activities at Niagara Falls will continue in a few weeks.”
As stated by Bit Digital, the fire and explosion destroyed the substation. This substation provided power for the mining facilities. However, the blast did not damage any of the mining rigs. Also, the company did not state if a faulty mining rig caused the explosion.
Bit Digital stated that “Blockfusion is striving to restore power quickly. Also, it is coordinating efforts with both its insurance and utility company.” The crypto miners believe that operations will continue within the coming weeks.
The mining firm and its partners have a total of six mining facilities in the US. Three of the facilities are located in New York, while the rest are in Georgia, Nebraska, and Texas.
Currently, Texas is among the crypto-friendly states in the United States. Bit Digital noted that its working hash rate has decreased by over 46.8%. This reduction is due to the loss of approximately 4,805 machines.
Share Price Of Bit Digital Drop By 6%
The price of Bit Digital shares, which are listed publicly on the Nasdaq Stock Exchange, has dropped. At the time of publishing, the shares have fallen by approximately 6% to $1.59 in 24 hours.
Also, Bit Digital has embraced the use of green energy mining. According to the firm, over 67% of the energy it uses for mining comes from renewable sources. This is part of the company’s goal to ensure its operations are more environmentally friendly.