Nasdaq-listed mining company Bit Digital has announced that some cryptocurrency mining devices have been shut down due to an incident at a substation in Niagara Falls, New York.

On May 10, an explosion occurred on the territory of the Blockfusion company, which provides services for docking mining equipment. According to Bit Digital, 2,515 bitcoin miners and 710 Ethereum miners have been disabled.

“Probably the explosion and fire were caused by the energy company’s faulty equipment. Blockfusion and company [Bit Digital] You intend to file claims, including seeking compensation for lost profits.

Bit Digital representatives emphasized that no one was injured in the incident and that there was no significant damage to the building and equipment.

“We hope operations will resume in a few weeks, but there are no guarantees on timing at this time,” the company said.

Previously, about 1,580 Bit Digital devices located outside the state were also disabled. Digihost Technology, which is responsible for hosting the equipment, said it needed to obtain additional permits from the authorities.

According to Bit Digital, the two events combined reduced the hash rate by “approximately 46.8%”.

“Until the situation is corrected, this is expected to have a material adverse impact on our operating results,” the statement said.

Bit Digital mined 240 BTC in the fourth quarter of 2021, mined 1013 BTC in the first three months and produced 592 BTC in the following period. The company noted that the decline was a result of immigration from China.

Recall that in the spring of 2022 Bit Digital distributed 39.2% of cryptocurrency mining installations in North America. As of March 15, the firm had 10,462 bitcoin miners and 712 Ethereum miners. The hardware hash rate was 0.511 EH/s and 0.188 TH/s, respectively.