Biden mandates the removal of a Chinese-owned cryptocurrency mining operation situated near a missile base

President Biden has expressed concerns that “Entities owned by Chinese nationals ‘might take action that threatens to impair the national security of the United States.'” Consequently, he has taken action, signing an order aimed at a China-linked crypto mining firm. This order prohibits MineOne Cloud Computing Investment and its associates from utilizing land adjacent to a Wyoming nuclear missile base.

Released by the White House on May 13, the order mandates MineOne to divest property utilized as a crypto mining facility near the Francis E. Warren Air Force Base in Cheyenne, Wyoming. Biden invoked national security reasons for rescinding the firm’s property rights, citing credible evidence suggesting potential threats to U.S. national security from MineOne, primarily owned by Chinese nationals.

MineOne acquired the property in June 2022, intending to use it for crypto mining near the Air Force base. However, given the strategic importance of the military installation housing intercontinental ballistic missiles, the order mandates the removal of all equipment installed post-acquisition.

The order also imposes restrictions, preventing Chinese-linked entities from accessing the site, located within a mile of the base. MineOne has 120 days to sell the property and is prohibited from transferring it to third parties.

Previously, concerns regarding the site’s proximity to sensitive infrastructure were raised by Microsoft, highlighting potential risks of intelligence collection operations. This prompted a report to the Committee on Foreign Investment in the U.S. (CFIUS) in 2023.

Treasury Secretary Janet Yellen emphasized the role of CFIUS in safeguarding national security, highlighting the order as a measure to prevent foreign investment from undermining U.S. interests.

MineOne, which raised over $20 million in its initial fund, had garnered significant interest from U.S. institutional investors and high-net-worth individuals. However, the Biden Administration’s recent order underscores its stance on national security concerns associated with foreign investments, particularly in critical infrastructure sectors like crypto mining.

This move aligns with previous actions aimed at regulating the U.S. Bitcoin mining industry, following China’s example. As part of its broader approach to crypto regulation, the Biden Administration aims to mitigate potential risks and dependencies associated with foreign-owned entities operating in sensitive sectors.

The timing of this order, preceding a planned increase in tariffs on Chinese imports, including electric vehicles, underscores the broader geopolitical context within which these decisions are made.

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