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Nasdaq-listed mining company Bit Digital announced the shutdown of some devices for the extraction of cryptocurrencies due to an incident at a substation in Niagara Falls, New York.
On May 10, an explosion occurred on the territory of blockfusion, which offers services for the placement of mining equipment. According to Bit Digital, 2515 Bitcoin miners and 710 Ethereum miners were disabled.
“Presumably, the explosion and fire were caused by faulty equipment of the energy company. Blockfusion and company [Bit Digital] intend to file lawsuits, including seeking compensation for lost profits,” the statement said.
Representatives of Bit Digital stressed that as a result of the incident, no one was injured, and the building and equipment did not suffer significant damage.
“We hope that operations will resume within a few weeks, but now there are no guarantees regarding the timing,” the company said.
Earlier, about 1580 Bit Digital devices located in another part of the state were also disconnected. Digihost Technology, responsible for the placement of the equipment, said it needed additional permits from the authorities.
According to Bit Digital, the two incidents combined reduced its hashrate by “about 46.8%.”
“This is expected to have a significant negative impact on our operating results before the situation rectifies,” it said.
For the fourth quarter of 2021, Bit Digital mined 240 BTC, while in the first three months it mined 1013 BTC, and in the next period generated 592 BTC. The fall was the result of migration from China, the company said.
Recall that in the spring of 2022, Bit Digital deployed 39.2% of installations for cryptocurrency mining in North America. As of March 15, the firm had 10,462 Bitcoin miners and 712 Ethereum. The equipment hashrate was 0.511 EH/s and 0.188 TH/s, respectively.
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