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Innosilicon Disallow the Reports of Damage of $10 Million in Fire at Mining Farm

Innosilicon, the manufacturer of ASIC mining rigs has rejected media reports of a fire at one of its facilities in China. In a company’s Twitter post they said:

We can say with 100% certainty that the fire was not related to Innosilicon and there has been ZERO Innosilicon property or equipment loss.

On Monday, Bitcoin mining expert Marshall Long, posted photographs of a fire at a data center, on social media.

Dovey Wan, the Founding Partner of cryptocurrency firm Primitive Ventures, posted a video of the fire and also claimed; mining machines worth $10 million were destroyed in the fire.

Some users have claimed that the photographs and videos were of an old fire and were posted to boost bitcoin prices. The price of the cryptocurrency did see a small recovery. Bitcoin hash rate fell from 86 quintillion hashes per second to 82 quintillion hashes per second following the news of the fire. Bitcoin prices rose by $500 after the news of the fire at Innosilicons data center but have since then dropped to their original levels. This surge in prices was based on expectations that the loss of mining rigs in the fire would hamper the mining of new bitcoins.

Innosilicion’s Founder, Alex Ao had recently assured investors spooked by the prolonged slump in bitcoin prices that the cryptocurrency market operated in cycles and had a pattern of its own.

The power consumed by the bitcoin mining network is estimated to be as much as that consumed by Ireland. This has led to worries about its carbon footprint and its contribution to global warming and pollution. Especially since most of the bitcoin mining network is in China, which uses coal-based power plants for power generation.

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