Several large semitrailers were idling outside what has become a high-profile bitcoin mining facility in Cheyenne on Tuesday. There also were about a dozen large shipping containers scattered throughout the site in preparation for its tear-down.
Last week, President Joe Biden issued an executive order requiring the Chinese-owned cryptocurrency mine located a mile away from F.E. Warren Air Force Base to shut down and sell out, citing it as a national security risk. The order directs offshore cryptocurrency company MineOne Partners Limited, as well as all related MineOne entities, to immediately cease operation, remove all equipment and improvements, and transfer ownership of the facility to an approved buyer.
Biden’s order says there’s credible evidence that MineOne and its subsidiaries could take action to threaten to imperil national security. F.E. Warren Air Force Base is a strategic missile base and home to the Minutemen III Intercontinental Ballistic Missiles, which are a key element of the nation’s nuclear triad.
Leaders of the Wyoming Legislature’s Select Committee on Blockchain, Financial Technology and Digital Technology stressed at their meeting Tuesday that although they support Biden’s order, they also still support the cryptocurrency industry in Wyoming.
Not Discriminatory
Committee co-chair state Sen. Chris Rothfuss, D-Laramie, said he wants to send a clear message to the world that Wyoming is open for business and doesn’t want to discriminate against or keep out prospective bitcoin miners, no matter their background.
“We’ve put in a lot of work to get these people here, to bring good projects to the state of Wyoming,” Rothfuss said. “I don’t want anyone left with the opinion that the rest of the state in any way (is) in the same type of circumstance.”
When China prohibited all cryptocurrency mining in 2021, the state of Wyoming stepped into high gear to try and provide a “welcoming and hospitable environment” for these companies, Rothfuss said.
Co-chair Rep. Cyrus Western agreed with Rothfuss, but said it’s fully appropriate to monitor investment dollars made by people from countries that don’t align with American values.
“Not saying we shouldn’t do business with China or any of these other types of governments, because there’s absolutely legitimate business out there doing legitimate business,” he said. “But, we absolutely have to keep a watchful eye on these types of things.”
Although he wouldn’t go as far as praising Biden, he also said the action the president took was a necessary act to weed out bad actors and that crypto companies that follow the law are still welcome in Wyoming.
“Bad actors need not apply, but to the folks who want to engage in legitimate business and invest in our communities, we absolutely want them here,” Western said.
MineOne acquired the real estate in June 2022 but did not file its purchase with the Committee on Foreign Investments in the United States, which did not know about the purchase until it was tipped off by a member of the public.
Rothfuss said had the company notified the federal committee as it was supposed to, the current situation would never have happened.
“We should be more cautious in the future and recognize it happened one time, let’s not let it happen again,” he said.
What Does The Order Do?
The executive order prohibits this real estate transaction and gives MineOne 120 days to divest of all interests and 90 days to remove equipment and improvements it made to the property. MineOne is only allowed to access the property to dismantle and remove the equipment on the property.
MineOne must also certify in writing that a transfer of ownership has been completed.
Rothfuss said he also believes the MineOne order came as a result of unique circumstances, including its close proximity to F.E. Warren Air Force Base.
“Just pick a new site and that probably would have been the answer to that one,” he said.
The Plot Thickens
Rothfuss continued this sentiment when discussing the potential new owner of the MineOne property.
Zach Bradford, CEO of cryptocurrency company Cleanspark, said one of the two Wyoming sites his Las Vegas-based company recently announced its intention to buy for $18.7 million is owned by MineOne. Bradford said the purchase is under review by the Committee on Foreign Investments in the United States (CFIUS). The company announced the sale four days before Biden issued his executive order.
Bradford said his company is still fully committed to the purchase and expects to hear back from the committee within the next two weeks. He said he feels confident CFIUS will allow the sale to proceed.
“We remain confident in our ability to finalize the acquisition and seamlessly integrate the Wyoming sites into operation,” he said.
He also said the company was already planning to buy the land without any of the previous MineOne equipment there. If any equipment is not removed, Bradford said it’s his belief that the federal government could step in and sell it to Cleanspark.
Bradford claimed his company was unaware of the scrutiny MineOne was receiving from CFIUS and that an executive order was imminent.
“We found out in the same way that I think almost everybody did, which was with the order being published online,” he said. “It was quite the surprise for us.”
A member of U.S. Sen. Cynthia Lummis’ staff testified Tuesday they were also given no advance warning that Biden's executive order would be coming, a move he called unusual but not unprecedented. He encourages cryptocurrency companies to reach out to their office for assistance.
A Bold Request
It’s not the first time MineOne Partners Ltd. and its associated affiliates have been mentioned as a potential security risk.
Cheyenne-based Bison Blockchain’s Sean Murphy warned Wyoming lawmakers in 2023 of a “Chinese” takeover in Wyoming. He told lawmakers that a conglomerate of about eight entities run by Chinese nationals from MineOne, with varying levels of connections back to China, had deliberately pushed his company out not long after the facility broke ground in October 2022.
Murphy said his company fully supports Cleanspark as an American bitcoin mining operation, an arrangement Western described as “fortuitous.”
“We see Cleanspark coming to Wyoming being very positive,” Murphy said. “We know who they are, we know they’re reputable operators.”
But Murphy also raised concern that Cleanspark’s purchase of MineOne involves giving money to parties listed on Biden’s order. In May 2023, Bison Blockchain filed a $22 million lawsuit against MineOne and related companies, accusing it of breach of contract and other misdeeds.
Murphy requested Cleanspark to hold off on accepting its proceeds from the sale until his lawsuit is completed.
“Those that are representing our helping Chinese bitcoin miners, I think what’s going to happen is, you’re going to be tried in the public court of opinion, or the court of private opinion,” Murphy warned.
Leo Wolfson can be reached at leo@cowboystatedaily.com.
