The U.S. government has directed a Chinese-backed crypto mining entity to cease building a mining facility in Wyoming. MineOne Cloud Computing Investment and its associated entities are required to divest the property located near the Francis E. Warren Air Force Base in Cheyenne, Wyoming, according to the directive issued on May 13 and approved by President Joe Biden.
MineOne Cloud, primarily owned by Chinese interests, acquired the land in June 2022 with plans to establish a cryptocurrency mining operation.
The directive noted, “There is credible evidence that suggests MineOne Partners Limited, a British Virgin Islands-based company largely owned by Chinese individuals, […] might engage in activities that could endanger the national security of the United States.“
The directive mandates the company to dismantle all installed equipment at the location. Additionally, it prohibits entities linked to China from accessing the site, which is located near the U.S. air base.
MineOne is given a 120-day period to conclude its operations and sell off the property. Moreover, it is barred from transferring these assets to any third party.
The mining facility first drew attention in October 2023 when tech behemoth Microsoft, running a data center nearby, raised concerns.
Microsoft alerted the Federal Committee on Foreign Investment in the United States, flagging concerns that the site might function as a “full-spectrum intelligence collection operation.”
The company’s report speculated on the potential threat posed by the substantial computing capacity of an industrial-scale crypto-mining facility. This concern was compounded by the presence of unidentified Chinese nationals in close proximity to Microsoft’s Data Center and one of the U.S.’s three strategic missile bases.
Following an investigation, the committee identified significant national security risks associated with the mining site.
In recent years, the U.S. has experienced an influx of Chinese-owned crypto-mining operations relocating to the country following China’s ban in 2021. The appeal lies in regions offering competitive electricity rates, a significant draw for these entities.
Reports from The New York Times indicate the presence of Chinese-owned mining farms in at least 12 states across the U.S., including Texas, Wyoming, Arkansas, and Ohio.
Last month, the Biden administration took action against the cryptocurrency mining sector, implementing a 30% tax on miners‘ electricity consumption. This move garnered criticism, with Wyoming Republican Senator Cynthia Lummis arguing that it would have a detrimental impact on the sector.
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