Chinese Bitcoin Mines in the US Attract National Security Attention
Bitcoin mining operations in the United States, owned by Chinese entities, are currently under investigation for potential issues that could threaten national security, according to the New York Times (NYT).
The scrutiny began last year when a Chinese company began constructing a cryptocurrency mining facility in Cheyenne, Wyoming.
National security experts at Microsoft raised these concerns and articulated them in a report from August 2022 submitted to the Committee on Foreign Investment in the United States.
One of the major concerns cited was the facility's proximity to a Microsoft data center serving the Pentagon.
Furthermore, it was located just about a mile from an Air Force base overseeing nuclear-armed intercontinental ballistic missiles.
The team emphasized that the location could enable the Chinese to conduct comprehensive intelligence collection operations.
Beyond intelligence concerns, these mining facilities, comprising large warehouses or containers housing specialized computers, place significant pressure on the local power infrastructure.
Legal documents indicate that the Cheyenne mining operation is associated with five companies, all sharing the same office address on Park Avenue in Manhattan.
One of these entities is registered in the Cayman Islands and, up until the previous year, was involved in the Chinese pork processing industry.
However, Li Jiaming, the president of Bit Origin Ltd., the former pork processor turned Bitcoin miner, refuted any claims of security threats.
Jiaming asserted that the site was selected because they had secured an agreement with the local utility company to provide power rather than seeking proximity to the Microsoft data center or the missile base.
He also emphasized the
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