Multiple Hosting Site Power Cuts Plunges Bit Digital Mining Hashrate by 46.8%
Godfrey Benjamin May 20, 2022 03:00
Bit Digital Inc, one of the publicly listed cryptocurrency mining companies in the United States has announced a major halt in its operations at some of its third-party hosting sites
Bit Digital Inc, one of the publicly listed cryptocurrency mining companies in the United States has announced a major halt in its operations at some of its third-party hosting sites.
According to the company, its hosting partner Blockfusion USA Inc said the substation at its Niagara Falls, NY facility was damaged by an explosion and subsequent fire, resulting in a forced halt in operation.
While Blockfusion said the fire did not damage any of Bit Digital’s miners, the halt in operation has notably cut off approximately 2,515 of our bitcoin miners and approximately 710 ETH miners off the mining network.
Bit Digital said claims for the losses that will be incurred for the more than two weeks it will be offline will be filed from both the insurer and the national grid. In another unusual turn of events, Bit Digital’s other hosting service provider, Digihost Technology Inc also reported a halt in operations on the grounds of a regulatory impasse.
The firm said the Digihost halt “has resulted in approximately 1,580 of our miners going offline, citing the need for additional approvals from the power authorities. Digihost has made the applications and expects initial feedback this month,” adding that “Digihost also continues to await approval from the New York Public Service Commission in order to complete its acquisition of the site's 60MW power plant; at this time there can be no assurances as to timing. Bit Digital management continues to monitor the situation.”
The unprecedented events are bound to impact the firm's overall productivity with the 46.8% plunge in its hashrate. Mining difficulty has continued to rise significantly in recent times. By going offline, Bit Digital will put itself in a less competitive position to join the race to mine the remaining 2 million BTC units.
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