3K+ Bit Digital hosting partner's crypto miners go offline after explosion and fire

New York-headquartered crypto mining firm Bit Digital reported two of its hosting partners ceased operations to more than 4,800 rigs following power disruptions at different facilities.

In a Thursday announcement, Bit Digital said a substation in Niagara Falls was damaged by “an explosion and subsequent fire,” necessitating its partner Blockfusion USA to take 2,515 Bitcoin (BTC) miners and 710 Ether (ETH) miners offline at the site.

In addition, the mining firm reported its Digihost partner experienced a similar cut in power to a facility in North Tonawanda, New York, resulting in 1,580 crypto miners going offline.

According to Bit Digital, the damage from the explosion and fire did not directly affect any mining rigs — just the substation providing electricity.

In addition, the mining firm did not suggest any of its rigs were the cause of the accident, which was attributed to “faulty equipment owned by the power utility,” and will be seeking reimbursement for the lost revenue from mining cryptocurrency.

Blockfusion is working with its insurer and the utility to restore power as quickly as possible