Bitcoin Mines Destroyed

At least three bitcoin mining farms have been flooded in Sichuan, China’s remote region dubbed the bitcoin mining capital of the world.

Cheap electricity during the rainy season due to abundant hydropower has made the area very attractive for miners, but for the last three days heavy rain has continued, leading to a flood from the overflowing river.

“Water has risen to the second floor, all my clients’ mining machines are soaking in water. This is a natural disaster, have to [say] sorry to my clients,” said one miner on WeChat according to local media which further quotes a source as stating:

“As far as I know, three mining farms have been damaged, including mine. The flood knocked down two three-story shelves with more than 100 mining machines washed away in my mine, causing more than 1 million yuan losses.

As roads have been blocked by raging floods and landslides, it is difficult to check the scale of damage, all the few messages I know was sent from miners inside there.”

The same area was flooded last year as well with hundreds of ASICs and GPUs destroyed.

It isn’t clear whether it is actually the same farms too, with the vicinity to the river potentially making electricity cheaper, and thus maybe worth the cost of these floods.

The hashrate has not been affected, but it appears this flood was very recent, so it may take some time for difficulty to adjust.

One can estimate it even before the difficulty adjustment, but depending on when this flood happened exactly, it might be too early.

Bitcoin’s price has fallen by about 10% today, but it’s not clear whether it’s related. If it is, then presumably it would be due to the affected miners perhaps selling some coins to cover the costs.

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