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Bitcoin Mine Fire Halts Operations
30 Nov
Summary
- A fire caused by electrical failure shut down Greenidge's New York Bitcoin mine.
- Operations are expected to resume within weeks, with no damage to mining rigs.
- The outage occurs during a tough period for Bitcoin miners facing low profitability.
Greenidge Generation Holdings has temporarily ceased operations at its significant Bitcoin mining facility located in Dresden, New York, following a fire ignited by an electrical switchgear failure. The company stated that the Dresden site, a critical 106-megawatt asset that also hosts equipment for NYDIG, was de-energized as a safety measure and remains offline.
While the fire did not affect Greenidge's mining rigs, the company projects a full return to operations within several weeks, though a definitive timeline has not been established. This shutdown impacts one of Greenidge's primary energy sources for Bitcoin mining, occurring when the broader mining sector is already contending with diminished profitability due to falling hashprice and rising operational expenses.
The industry faces broader pressures, including Tether's recent closure of its Uruguay operations due to electricity costs and potential US investigations into Bitmain, a key ASIC manufacturer, over national security concerns. These factors contribute to a challenging environment for Bitcoin miners globally.
