Bit Digital, a crypto mining company based in New York, said two of its hosting partners had shut down more than 4,800 rigs due to power outages at various locations.
Bit Digital said in a Thursday release that “an explosion and ensuing fire” damaged a substation in Niagara Falls, forcing its partner Blockfusion USA to take 2,515 Bitcoin (BTC) miners and 710 Ether (ETH) miners offline at the location.
Furthermore, the mining firm said that its Digihost partner in North Tonawanda, New York, experienced a similar power outage, resulting in 1,580 crypto miners falling offline.
The explosion and fire, according to Bit Digital, did not directly touch any mining equipment, only the substation that provided electricity.
Furthermore, the mining company did not claim that any of its rigs were to blame for the catastrophe, which was linked to “faulty equipment held by the power utility,” and will be seeking compensation for lost crypto-mining revenue.
Bit Digital added, “Blockfusion is working with its insurer and the utility to restore power as soon as feasible.” “Operations are expected to restart in a few weeks, although there can be no guarantees at this time.”
Three of the mining company’s and its partners’ facilities are in New York, with one each in Texas, Nebraska, and Georgia. Bit Digital revealed that its operating hash rate had plummeted 46.8% since the 4,805 rigs went down.
Bit Digital shares, which are traded on the Nasdaq Stock Exchange, have dropped more than 6% in the last 24 hours to $1.59 at the time of publication.
The company has taken steps to become more environmentally friendly, saying that 67 percent of its mining energy comes from renewable sources.