Fire Breaks Out at Greenidge Mining Facility Hosting NYDIG Rigs

Summary:
Greenidge Generation Holdings reported a fire incident at its mining facility in Dresden, New York, which co-hosts operations with NYDIG. The fire, attributed to an electrical switchgear failure, led to the complete shutdown of the facility. Fortunately, the mining rigs remained unharmed, and normal operations are anticipated to resume within a few weeks.

Key Takeaways

A fire broke out at Greenidge's facility in New York, caused by an electrical issue.
The company is co-hosting operations with NYDIG, and no mining rigs were damaged in the incident.
Downtime emphasizes the challenges faced by commercial mining operations.
The hash price, a key profit metric in mining, has dropped recently, raising profitability concerns.
Tether has shut down its mining operations in Uruguay due to high energy costs.
Bitmain is under investigation by U.S. officials over national security issues regarding its mining hardware.

Fire breaks out at Greenidge mining facility co-hosting NYDIG rigs

Fire Incident at Greenidge’s Dresden Facility

Greenidge Generation Holdings, known for its Bitcoin mining operations, announced that a fire occurred at its Dresden, New York facility on Sunday. This facility is shared with NYDIG for mining activities. According to a filing with the Securities and Exchange Commission (SEC), the fire was attributed to a failure in the electrical switchgear, which resulted in the company shutting down all power to the facility. Thankfully, the mining rigs were not affected, and Greenidge expects to restart regular operations in a few weeks, although no specific timeline has been provided.

Greenidge disclosed the fire at the Dresden, New York, facility in a recent SEC filing. Source: Greenidge

Greenidge’s Dresden site is capable of generating 106 megawatts of natural gas energy used to power its mining equipment and the machines it shares with NYDIG, according to TheMinerMag. The incident underscores the various challenges faced by commercial mining operations, which often operate on tight profit margins and must navigate issues such as supply chain disruptions, high energy costs, equipment malfunctions, diminishing block rewards, and regulatory obstacles.

Mining Industry Faces New Challenges

The recent downturn in the mining industry is putting additional pressure on miners. In November, the hashprice, which is a crucial metric for understanding miner profitability, fell to around $35 per petahash per second (PH/s) as Bitcoin prices dipped to nearly $80,000. To provide context, mining generally becomes less profitable when hash prices drop below the $40 PH/s threshold. Currently, the hash price has recovered slightly to about $39 PH/s, as noted by Hashrate Index.

Bitcoin mining hash price August-November 2025. Source: Hashrate Index

In a related development, Tether, a stablecoin issuer, announced it would cease its mining operations in Uruguay, citing skyrocketing energy costs as the primary reason. They are also engaged in a dispute with a state-owned energy provider regarding $4.8 million in overdue energy bills and fees.

Additionally, Bitmain, a leading manufacturer of mining hardware, is currently under scrutiny from U.S. officials due to national security concerns. Investigators are examining whether the hardware used to mine proof-of-work cryptocurrencies could be exploited for espionage purposes. Bitmain holds approximately 80% of the market share for mining hardware, making any potential restrictions a significant concern for the mining sector.

Related: Bitcoin mining industry ‘going to be dead in 2 years’: Bit Digital CEO