Biden orders Chinese crypto-mining company to sell land near US nuclear missile base

Asia-Pacific, News, US May 15, 2024 , by IRIA No Comments

U.S. President Joe Biden has issued a directive to China-linked, MineOne Cloud Computing Investment, a cryptocurrency mining company, to sell land near the U.S. nuclear missile installation in Wyoming after an investigation identified national security risks posed by a crypto facility.

The White House statement described the site as a “strategic missile base and key element of America’s nuclear triad.”

The cryptocurrency mining facility, which operates high-powered computers in a data center near the Francis E. Warren Air Force Base outside Cheyenne, Wyoming, “presents a national security risk to the United States,” the president said in an executive order. The order added that the technology and equipment can be used for surveillance and espionage activities.

The executive order did not elaborate on the specific risks that the company posed to the U.S. national security. However, a report on the same matter by Microsoft submitted to the federal committee last year, stated, “We suggest the possibility that the computing power of an industrial-level crypto mining operation, along with the presence of an unidentified number of Chinese nationals in direct proximity to Microsoft’s Data Center and one of three strategic-missile bases in the U.S., provides significant threat vectors.”

Map showing the proximity of the MinerOne site and Francis E. Warren Air Force Base — *^{Map showing the proximity of the MinerOne site, Francis E. Warren Air Force Base and the Microsoft data center. (Image Credit: Google Maps/CoinTelegraph)}*

The United States has experienced a surge in Chinese-owned cryptocurrency mines following the ban on such facilities in China in 2021. Although some crypto mining operations have resumed their operations in China since then, Chinese entrepreneurs in the crypto space are attracted to the United States due to its comparatively inexpensive electricity and crypto-friendly legal framework.

Crypto mining operations are usually based in large warehouses packed with specialized computers that operate continuously, conducting trillions of calculations per second. Such facilities aim to seek out a specific sequence of numbers that will yield them new cryptocurrency rewards, with Bitcoin being the most prevalent, currently valued at over $60,000 each. These crypto-mining facilities demand a substantial amount of electricity. When operating at full capacity, the MineOne facility in Cheyenne consumes as much power as 55,000 homes

MineOne acquired the property in Cheyenne near the Air Force base in June 2022 and repurposed it for cryptocurrency mining operations. As outlined in the executive order, the military installation is critical as it serves as a strategic missile base housing Intercontinental Ballistic Missiles (ICBM). MineOne has been given 120 days from the issuance of the order to vacate the property, with a strict prohibition against transferring it to third parties.

The Committee on Foreign Investment in the U.S. (CFIUS), a powerful body that scrutinizes deals for national security threats, was not notified about the purchase by the company, the White House said.

There are increasing concerns among US lawmakers around Chinese acquisitions of real estate near critical military installations. The recent declaration from the White House arrives only a day before the Biden administration plans to substantially raise tariffs on various Chinese imports, including electric vehicles.

On Tuesday, President Joe Biden introduced a package of significant tariff hikes on a variety of Chinese imports, encompassing electric vehicles, computer chips, and medical goods. This move potentially sets the stage for a confrontation with Beijing in an election year, as Biden aims to win over voters critical of his economic strategies.