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According to Eric Meltzer who is a partner at INBlockchain which is the largest blockchain-focused fund in China, rumors suggest that a Bitcoin mining facility was recently destroyed by a massive flood which affected the entire province of Sichuan, China.

INBlockchain has become one of the most influential cryptocurrency funds in Asia with strong connections in China – and Meltzer has been an investor in Bitcoin back in 2013 and an early investor in Ethereum, Zcash, Qtum, EOS, OmiseGO, Status, and Decentraland, leading to the growth.

This week, Meltzer shared the photograph of a destroyed mining facility which shows stacks of ASIC miners that were affected by the heavy rain and flood which swept most parts of China over the past few days.

The Chinese News Service (ECNS) which is the second largest state-owned news agency in China reported the following:

“From Wednesday to Thursday, heavy rain hit Anhui, Jiangsu, Sichuan, Shandong and Jilin provinces. Caolaoji, Anhui, and Dafengzha, Jiangsu, were the most heavily hit, the State Flood Control and Drought Relief Headquarters said.”

The second most utilized cryptocurrency wallet platform behind Coinbase dropped its hashrate from 43 million TH/s to 30 million TH/s which is more than 30% overnight. Many people think that the Suchian flood incident has to do with this. However, Meltzer, who discussed everything with the local analysts, said that this theory is a combined effect of the flood and the increasing heatwave in Eastern Europe that is causing mining centers with low-profit margins to generate less money.