Biden Blocks China-Backed Crypto Mining Firm From Owning Land Near Air Force Base

U.S. President Joe Biden has just barred a Chinese cryptocurrency mining company from owning property near the Francis E. Warren Air Force Base in Wyoming, citing national security risk concerns.

The company, MineOne, is majority-owned by the People's Republic of China, according to a statement released Monday by the U.S. Treasury Department. The land area in question is located one mile from the strategic base, which stores Minuteman III intercontinental ballistic missiles.

MineOne acquired the property in June 2022 but did not file its acquisition transaction with the Committee on Foreign Investment in the United States (CFIUS) until after the committee investigated "as a result of a public tip," the statement said. The Committee can negotiate with concerned parties, but in the case of MineOne, the CFIUS deemed that it was not possible to forge a negotiated agreement to adequately address national security risks related to the crypto mining firm's operations, the statement noted. This conclusion led to the CFIUS referring the matter to the U.S. president.

A few months after the transaction, Biden issued an executive order to expand the existing factors the CFIUS uses to review foreign investment transactions, ensuring that the Committee can cope with evolving vulnerabilities and threats.

Treasury Secretary Janet Yellen said the divestment order highlights the president's commitment to national security. It also underscores the critical role played by the CFIUS as a gatekeeper that ensures foreign investments do not undermine U.S. national security, she said. The committee is particularly focused on probing transactions that potentially threaten sensitive American military installations and assets, as well as transactions that involve cutting-edge technology, she added.

Biden's order states that there is "credible evidence" MineOne "can take action that threatens to impair the national security of the United States." He said the proximity of MineOne's operations to U.S. military assets suggests that the company is potentially capable of carrying out "surveillance and espionage activities."

Under Biden's divestment order, MineOne will need to remove its equipment from the area and dismantle improvements added to the property, including all repair, excavation, and utility equipment. It also requires the Chinese crypto mining firm to "certify in writing" that it has completed the removal of the equipment within 120 calendar days from the date of the order.

The order comes a few weeks after Chinese President Xi Jinping told U.S. Secretary of State Antony Blinken that Washington and Beijing should be "partners, not rivals," given that the two are the world's largest economies. "We hope the U.S. can also take a positive view of China's development," he added.

The quest for dominance between the two economic powerhouses has intensified in recent years, across various sectors, including electric vehicles. However, the crypto competition is just starting to heat up.