A major US Bitcoin miner, Greenidge Generation Holdings, reported a fire at one of its primary facilities on Sunday in Dresden, New York, forcing operations to temporarily shut down.
In the filing to the Securities and Exchange Commission, the business attributed the incident to an “electrical switchgear failure.”
Management took it upon themselves as a safety measure to de-energise the whole plant following the incident.
Since then, the location, which houses both NYDIG-operated and company-owned machinery, has been down.
Firm to re-open in weeks
Although no timeframe has been given, Greenidge stated that the incident did not harm its mining rigs and that it anticipates resuming full operations in “a few weeks.”
One of the company’s most significant energy assets, the Dresden facility generates about 106 megawatts of natural gas electricity directly utilised for Bitcoin mining.
The disruption occurs at a challenging time for the mining industry, which is still dealing with declining profit margins, erratic Bitcoin prices, and growing energy expenses.
After Bitcoin momentarily fell near $80,000 in November, Hashpricem, a crucial measure of miner profitability, fell sharply, causing many operators’ income per unit of processing power to go below breakeven.
The hash price has lately recovered to about $39 per petahash per second (PH/s), according to data from the Hashrate Index, but it is still below what most miners believe is viable for long-term operations.
New tensions follow
A surge of tension in the industry also precedes the Greenidge fire. Due to skyrocketing power costs and an unresolved billing issue with a state-owned utility, Tether recently announced that it has closed its Bitcoin mining operations in Uruguay.
Simultaneously, Bitmain is allegedly the subject of an inquiry by US officials due to national security concerns related to its ASIC manufacturing business. Any limitations might further disrupt operations for miners operating in the United States, since the Chinese corporation dominates the worldwide mining equipment industry.
While Greenidge says the shutdown is precautionary, the timeline for a full restart will be closely watched by investors, as any prolonged outage at this core facility could weigh on production targets and financial performance.
Greenidge has not yet provided a timetable for restoring full operations, making the duration of the shutdown and the extent of any equipment damage key factors in determining the company’s near-term financial impact.People wait with wrapped attention as to what will be the course of action for the company in a complicated situation.
Also Read: Bitcoin Mining Quietly Makes A Comeback In China As Cheap Power & Data-Center Expansion