LITTLE ROCK (KATV) — Plans are in the works for a cryptocurrency mining operation in Vilonia, Arkansas…something townsfolk and local government officials are opposed to.
If you think a Chinese Bitcoin mining facility might seem out of place in rural, small town Arkansas, the citizens of Vilonia agree.
At Tuesday night’s town council meeting, a number of community members were given time on the agenda to voice their opposition to the installation of a crypto-mining facility within a mile of residential areas.
The issue of proximity to the mining sites is made clear by Gladys Anderson’s situation. A crypto mine was constructed right next door to her home in Bono, Arkansas.
The facility’s extremely powerful computers emit a constant, unbearably loud drone that torments both Anderson and her son, diagnosed with autism and sensitive to sensory stimuli.
“It’s caused a lot of headaches…I’ve been to the doctor over headaches,” she said. “My son is currently in the backyard having a meltdown.”
Anderson said that in the mere months the mine has been next door, it has gone through three site managers.
“They’re not going to tell you the truth,” she said. “They’re not going to do what they say they’re going to do.”
Anderson expressed that she felt deceived, initially having been told – like others – that the crypto-mining facility would create minimal noise.
Green Digital LLC, the company which owns and operates the Bono site and plans to construct a similar one in Vilonia, assured that sound walls would be installed.
Anderson says she has been waiting months.
Crypto mines are, very simply put, large arrays of powerful computers dedicated to generating digital currency. They consume massive amounts of energy, which is why Green Digital LLC places them in the immediate vicinity of power substations.
The considerable usage of local power is a chief concern in Vilonia.
“It was discussed in a planning meeting that they were going to be using the equivalent of 30 schools worth of power,” said Vilonia Councilman Mike Matos. “And one of the questions posed was: ‘what happens if another investor wants to come to our city and our power grid needs to be upgraded because of the massive amount of energy this thing is using.”
Green Digital LLC, according to opencorporates.com, has a Mr. Gang Hu as it’s director and/or officer–listing him as a manager among other positions. Gang Hu appears to be the same Gang Hu as the CEO of Greenland USA, a multibillion dollar real estate company and subsidiary of Greenland Holding Group, a Chinese real estate developer with ties to the Chinese government.
Vilonia Mayor Preston Scroggins doesn’t like one bit of it.
“I think foreign ownership of farmland and stuff is…at least the federal government and I understand the state government did something good, they passed a bill banning that,” Scroggins said. “I wish we could do more here in our country.”
The planning commission is still in the process of deciding if the crypto mine will be allowed to call Vilonia home.
Multiple crypto mining facilities have sprung up around Arkansas, several of which are owned by Green Digital LLC. The sudden appearance of the operations is received with little welcome by many in areas playing host to them.
The introduction of these mines to Arkansas, particularly recently, is perhaps due to Act 851 of the Arkansas Legislature, which seeks to regulate “digital asset mining” in the state as well as loosen restrictions on the business – equating the mining operations with data centers.
The bill asserts that “data centers create jobs, pay taxes, and provide general economic value to local communities and this state,” and aims to “clarify the guidelines needed to protect data asset miners from discriminatory industry specific regulations and taxes.”
The bill establishes rules for both miners and local governments, placing significant limitations on what local government can do.
The following is taken from the bill:
“Local government shall not:
- Enact or adopt an ordinance, policy, or action that limits the sound decibels generated from home digital asset mining other than the limits set for sound pollution generally;
- Impose a different requirement for a digital asset mining business than is applicable to any requirement for a data center;
- Rezone an area in which a digital asset mining business is located without complying with applicable state law and local zoning ordinances; or
- Rezone an area with the intent or effect of discriminating against a digital asset mining business.
- A digital asset mining business may appeal a change in zoning of an area by a local government under any applicable state law or local zoning ordinance.
- If consistent with applicable state and federal statutes, orders, rules, and regulations, including without limitation 23-3-114 and 23-4-103, the Arkansas Public Service Commission shall not establish an unreasonably discriminatory rate for a digital asset mining business customer.”