The City of Niagara Falls, New York has issued a cease-and-desist notice to crypto mining firm Bit Digital (BTBT) over a data facility it operates in the community with its partner Blockfusion.
In a statement, Bit Digital said the notice will stop the facility from conducting “any cryptocurrency mining or related operations” until Blockfusion becomes compliant with local zoning ordinances.
Blockfusion says it could take several months for it to get the necessary permits to mine for cryptocurrencies in the New York State city.
According to Bit Digital, the Blockfusion facility was one of two forced to cease operations, impacting about 4,800 cryptocurrency mining rigs. About 17% of Bit Digital’s 13,980 active cryptocurrency miners are located in Niagara Falls, New York.
The City of Niagara Falls imposed a 180-day moratorium on Bitcoin mining back in December 2021 after residents complained about the facilities, including excessive noise and energy consumption.
Niagara Falls subsequently allowed cryptocurrency mining to resume but under permits and regulations that aim to limit the impacts on the local community.
New York State lawmakers are currently debating whether to impose a state-wide moratorium on all cryptocurrency mining activities.
Bit Digital’s stock is down 83% this year and trading at $1.05 U.S. per share.
