Crypto mining farm in China washed away due to massive floods, causing losses to miners
A cryptocurrency mining farm in China’s Sichuan province has been flooded amid heavy rain, leading to damages of over 1 million yuan (~$140,000) for some miners according to a report from 8btc.
Poolin, the fourth-largest mining pool by hashrate, tweeted two short video clips of the farm on Tuesday, showing its personnel “digging out miners [machines] from the mud.”
Molly Zhang, an admin of Poolin’s official Telegram channel, told The Block that Poolin did not own the flooded mining farm, but some of its customers were using the area's hosting services.
lylian Teng, an editor for Chinese crypto media outlet 8btc, told The Block that some Sichuan mining farms are “indeed damaged,” citing anonymous local sources, but added that the situation was “not that serious like...last year.”
Miners will have to bear losses from the damage as insurance policies do not cover such cases, according to the 8btc report. It remains unclear at the moment how much mining equipment was "wiped out" in the flooding, per the report.
The Sichuan province is known for its cheap electricity supply, especially during the rainy season. Back in May, government authorities were reportedly probing into crypto mining farms in Sichuan that had allegedly been constructed without official approval.
