A Chinese Bitcoin mine in Wyoming is causing alarm, due to its strategic location near a Microsoft data center and a U.S. Air Force base.
The mine, which is part of a growing trend of Chinese companies setting up Bitcoin mining operations in the U.S., sparked fears of potential espionage or disruption of the electrical grid.
The Bitcoin mine in question is located in Cheyenne, Wyoming, and is linked to five companies sharing the same Manhattan address. One of these companies, Bit Origin Ltd, was previously a Chinese pork-processing company and is registered in the Cayman Islands.
Despite this, none of the companies have been found to have direct ties to the Chinese government or Communist Party.
OK, why is there a CHINESE BITCOIN MINE in Wyoming 🤯
Chinese bitcoin mine in Wyoming sparks security fears https://t.co/AjmJVyWCXa via @MailOnline
— Dreambuilder (@Dreambu49405472) October 13, 2023
The operation’s proximity to a secure Microsoft data center and the F.E. Warren Air Force Base, home to the 90th Missile Wing, has raised concerns about potential security threats.
In a report to the Committee on Foreign Investment, Microsoft stated while there were no direct indications of malicious activities by the entity, the computing power of an industrial-level crypto-mining operation (and the presence of an unidentified number of Chinese nationals nearby) could pose significant threat vectors.
The energy consumption of these Bitcoin mines is another cause for concern. Collectively, they use enough energy to power 1.5 million homes. At full capacity, the Cheyenne mine alone would require enough electricity to power 55,000 houses.
This vast power consumption, coupled with the ability of Bitcoin mines to switch on or off at a moment’s notice, could potentially disrupt the delicate power grid.
In at least 12 states, including Arkansas, Ohio, Oklahoma, Tennessee, Texas and Wyoming, @nytimes identified Chinese-owned or -operated Bitcoin mines that together use as much energy as 1.5 million homes. https://t.co/ebcqfo9Tmg
— 780th Military Intelligence Brigade (Cyber) (@780thC) October 13, 2023
U.S. government officials have confirmed that they have been monitoring the Wyoming operation for months.
Measures have been taken to mitigate potential intelligence collection at the site, although details of these measures have not been disclosed. The mining company has also responded to queries from the federal investment committee.
In addition to the Microsoft data center and the Air Force base, the Wyoming mine is also located near the NCAR-Wyoming Supercomputing Center. This facility provides high-power computing to atmospheric and weather researchers, adding another layer of strategic importance to the location.
The situation in Wyoming serves as a stark reminder of the potential security risks posed by foreign-owned Bitcoin mines.
As the U.S. continues to grapple with the implications of China’s increasing presence in the Bitcoin mining industry, it is crucial that we remain vigilant and proactive in safeguarding our national security.
