Crypto news

Bit Digital mining company had to shut down its equipment

Nasdaq-listed mining company Bit Digital reported that some of its cryptocurrency mining equipment was disabled due to an incident at a substation in Niagara Falls, New York.

On May 10, there was an explosion at Blockfusion, a firm that offers hosting services for mining equipment. According to Bit Digital, 2,515 bitcoin miners and 710 Ethereum miners were shut down.

“The explosion and fire were presumably caused by the power company’s faulty equipment. Blockfusion and [Bit Digital] intend to pursue claims, including seeking damages for lost profits,” the statement said.

Bit Digital officials stressed that no one was injured in the incident, and there was no significant damage to the building or equipment.

“We hope that operations will resume within a few weeks, but there are no guarantees about the timeline right now,” the company said.

Earlier, about 1,580 Bit Digital devices elsewhere in the state also were down. Digihost Technology, which is responsible for hosting the equipment, said it needed additional permits from authorities.

According to Bit Digital, the two incidents combined reduced its hash rate by about 46.8 percent.

“This is expected to have a significant negative impact on our operating results until the situation is corrected,” the statement said.

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