Chinese Bitcoin Mines in the US Raise National Security Concerns

According to The New York Times, Chinese bitcoin mining operations in the United States have raised national security concerns. One such facility is situated next to an Air Force nuclear missile installation in Cheyenne, Wyoming, and a Microsoft data center supporting the Pentagon. 

Why its Location is Threatful?

The establishment of a crypto-mining facility in Cheyenne, Wyoming, by a Chinese business last year sparked concern from a Microsoft team that monitors threats to national security. 

The location was about a mile from an Air Force base that managed nuclear-armed intercontinental ballistic missiles and was near a Microsoft data center that supported the Pentagon.

The location might allow the Chinese to “pursue full-spectrum intelligence collection operations,” the Microsoft team said in a report submitted in August 2022 to the Committee on Foreign Investment in the United States, a federal agency that keeps track of hazards posed by foreign investors.

Microsoft’s advice was taken seriously. The Wyoming operation had been under surveillance for months, according to U.S. government sources who spoke to The New York Times last week on the condition of anonymity. A representative said steps had been made to prevent potential intelligence gathering but would not go into further detail. The mining business also claimed that it answered the government investment committee’s inquiries.

Why are these Bitcoin Mines Concerning?

The previously unknown national security worries about the Wyoming location reflect a larger uneasiness with the recent increase in Chinese Bitcoin mines around the US.

The mines, which are massive warehouses or containers packed with sophisticated computers, raise concerns about information collection and put enormous strain on electricity grids. When “mining” for digital coins—the most well-known of the many cryptocurrencies—computers often work nonstop. 

The NYT was informed by Bit Origin, a business connected to the Cheyenne mine, that it had responded to the U.S. government committee’s inquiries. The location was picked after obtaining a commitment from the local utility company to supply it with electricity, according to Li Jiaming, president of the former pork processor turned bitcoin miner, and not because of its proximity to the Microsoft data center or the missile base. 

Many of these mines were built following China’s 2021 ban on bitcoin mining. According to the NYT, a number of them allegedly have connections to the Chinese Communist Party or state-owned organizations that are hidden behind numerous shell firms.