The City of Niagara Falls has approved an immediate end notice to New York-based crypto mining firm Bit Digital regarding a data facility operated and owned by its alliance Blockfusion.

Bit Digital said in an October 7 announcement that the city notice would effectively prevent the facility from undergoing cryptocurrency mining or related operations until Blockfusion complies with the city's zoning ordinances. Following a moratorium, the Niagara Falls legislation went into effect on Oct. 1, mandating Blockfusion to apply for extra permits, which "may take several months to process.

According to Bit Digital, the Blockfusion facility was among two that had to shut down over 4,800 rigs after an "explosion and subsequent fire" at a Niagara Falls substation in May. According to the company, it was restored to power in September. As of Oct. 6, approximately 17% of Bit Digital's 13,980 active miners — 2,376 rigs — were housed in the single New York facility.

After receiving multiple complaints about the facilities, such as excessive noise, the City of Niagara Falls sanctioned a 180-day moratorium on Bitcoin mining beginning in December 2021. New York state lawmakers have considered similar initiatives for a state-wide moratorium on crypto mining operations. The suspension on Niagara Falls was eventually increased.

Do you think this will set a precedent for other cities regarding cryptocurrency mining? Drop your thoughts by sharing this article on social media.

Oct 12, 2022
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