Breaking: US President Blocks Chinese Bitcoin Mining Farm Near Military Base
Recently, the US president made a decision to prevent a Chinese company from establishing a Bitcoin mining farm close to a nuclear missile base in Wyoming. The move was driven by concerns regarding national security and potential ties to China. However, a new development has emerged, revealing that the Chinese company, MineOne, has sold the land to an American Bitcoin mining company instead.
Biden’s Action: Chinese Bitcoin Mining Farm Now in American Hands
- The American president intervened to stop the construction of the mining farm near the Cheyenne military base using his authority from the Committee on Foreign Investment in the United States.
- By leveraging these powers, Biden successfully blocked the acquisition of the land by a Chinese-affiliated company, MineOne.
- This marked the eighth instance of Biden using CFIUS powers to counter Chinese involvement in the US, emphasizing the issue of ownership rather than Bitcoin mining itself.
- The primary concerns included the company’s ties to China and the strategic location near the Cheyenne military base housing intercontinental ballistic missiles.
- It is implied that Biden’s opposition would not apply if the ownership of the mining farm were American.
A Strategic Shift
It has come to light that prior to Biden’s intervention, an American mining company named CleanSpark had acquired the land intended for the Cheyenne mining farm. CleanSpark, listed on Nasdaq as CLSK, disclosed in an official announcement that they had finalized agreements to purchase 75 MW of Bitcoin mining sites in Wyoming for $18.75 million.
- The company has secured agreements for two mining sites in Wyoming, offering 75 MW of existing power that can be further expanded by 55 MW.
- One of these sites includes the location near the Cheyenne base that was previously owned by MineOne and impacted by Biden’s actions.
- The timing of the sale to CleanSpark, just before Biden’s block, has raised questions about the sequence of events.
- While the sale is still pending, the circumstances surrounding Biden’s block and the subsequent sale to CleanSpark remain unclear.
Exploring CleanSpark’s Expansion
CleanSpark boasts ownership of eight data centers across the southern US, totaling nearly 400 MW. With additional facilities in New York and Wyoming, the company’s total mining capabilities are set to increase significantly.
- The acquisition of the Wyoming sites will contribute over 7 EH/s to CleanSpark’s hashrate, further solidifying its position as a major Bitcoin miner in North America.
- CEO Zach Bradford highlighted the importance of diversification in CleanSpark’s strategy, underscoring the company’s growth ambitions and pursuit of acquisitions.
- While the stock performance of CLSK has shown fluctuations in recent years, the company’s market value remains substantial compared to its competitors.
Hot Take: The Future of American Bitcoin Mining
As the landscape of Bitcoin mining continues to evolve, recent developments involving CleanSpark and the US government reflect the shifting dynamics within the industry. By prioritizing national security concerns and influencing the ownership of mining operations, regulatory interventions like Biden’s actions may shape the future of American Bitcoin mining.
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