Heavy floods in China’s Sichuan province threaten crypto mining farms
Crypto mining farms in the Sichuan province are under threat from rising floodwaters, amid significant rainfall in southwest China, news outlet 8BTC reported.
Local sources report that while the flood damage this year has been less severe than 2018, heavy rains have already affected several large-scale mining setups in the region, regarded as China’s ‘SegWitCoin (BTC) mining capital’ due to the concentration of mining firms based there.
Favored for its access to cheap hydroelectric power, Sichuan has emerged as an important destination for the Chinese mining sector. However, with flooding continuing to rise, more damage to property and human casualties are expected in the coming days.
The rainy season, which typically runs from April to October, is part of the attraction for crypto mining firms, which typically set up facilities next to rivers in the province to benefit from cheap, direct hydropower access.
However, this also places them at a unique disadvantage in flood conditions, with facilities amongst some of the first hit by rising water levels.
One WeChat user described the devastation caused by flooding to mining rigs operated on behalf of a client: “Water has risen to the second floor, all my clients’ mining machines are soaking in water. This is a natural disaster (we don’t want), have to apologize to my clients.”
Another quoted in local media said the flooding had resulted in losses of over 1 million yuan, with mining machines destroyed in their hundreds.
“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,” according to the source. “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. It’s lucky no one got hurt in my mine.”
The events are a heavy blow for a mining sector already battling to recover from depressed BTC prices. While there is yet to be any detectable downturn in the mining hashrate so far, similar events last year resulted in a significant drop.
To receive the latest CoinGeek.com news, special discounts on CoinGeek Conferences and other inside information direct to your inbox, please sign up for our mailing list.