BlockFusion Renews Bid for Niagara Falls Bitcoin Mining Permit After Long Delay

BlockFusion has renewed its request for a high-energy use permit in Niagara Falls, nearly 20 months after City Council delays left its Bitcoin mining operations dormant.

According to a Niagara Gazette report on Tuesday, the Council is set to review a draft environmental impact statement from BlockFusion at an upcoming meeting, potentially advancing the long-stalled approval process.

If accepted, the statement would trigger a 31-day public comment period and refer the application to the Planning Board for a hearing, the report said. This step revives a process that was halted in July 2023 when the Council split over noise concerns related to BlockFusion’s Frontier Avenue facility.

BlockFusion shut down operations in October 2022 after the city enacted stricter zoning rules for high-energy industries, including Bitcoin mining. The regulations included a 65-decibel noise limit at residential property lines.

The company applied for a permit in December 2022, asserting compliance with the updated code. However, conflicts emerged when city officials contested BlockFusion’s noise mitigation claims.

While the company’s consultant reported noise levels of 55.5 decibels at the nearest residence, the city argued that operations exceeded the threshold. Council Chair James Perry acknowledged BlockFusion’s efforts to meet regulatory requirements. “They shut down [when the code was amended] and tried to comply with everything they could,” he said in the report.

The 2022 zoning amendments followed resident complaints and imposed stricter conditions, including limiting such operations to industrial zones, enforcing distance buffers from homes, and setting noise limits.

BlockFusion claims the permit delay has jeopardized its expansion plans and financial solvency. The renewed request comes after the company signed a colocation agreement with Gryphon Digital to host its 4,334 Bitcoin miners.

Gryphon previously colocated its mining equipment at Coinmint’s facility in Massena, but that contract expired after the New Year when Coinmint evicted several hosting customers for its investor, NYDIG.