Chinese-Origin Crypto-Mining Operation Raises Security Concerns

A crypto-mining operation with Chinese origins in Cheyenne, Wyoming has raised national security concerns due to its proximity to key U.S. facilities.

Quick Facts

  • Location: The crypto-mining site is adjacent to a Microsoft data center supporting the Pentagon and is approximately a mile from an Air Force base overseeing nuclear-armed intercontinental ballistic missiles.
  • Security Concerns: Microsoft’s national security team warned that the location could enable the Chinese to engage in comprehensive intelligence collection operations.
  • Report: Microsoft submitted a report in August 2022 to the Committee on Foreign Investment in the United States, highlighting the potential threats from overseas investors.

The establishment of a crypto-mining operation by a company of Chinese origin in Cheyenne has drawn significant attention from U.S. security experts. The strategic location of the mining site, in close proximity to critical U.S. infrastructure, has raised eyebrows and concerns about potential espionage and intelligence-gathering activities.

Microsoft’s decision to alert the Committee on Foreign Investment in the United States underscores the seriousness of the situation. The committee, responsible for evaluating threats from foreign investors, now has to assess the implications of having such an operation near sensitive U.S. installations.

As the global landscape of cryptocurrency mining shifts, with many operations moving out of China due to regulatory crackdowns, the U.S. finds itself grappling with the challenges of hosting these operations, especially when they are in close vicinity to national security assets.

For Further Reading
Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. The decentralized nature of cryptocurrencies, especially Bitcoin, has led to the rise of mining operations worldwide. As these operations seek favorable environments for mining, issues related to energy consumption, environmental impact, and now national security have emerged.


Why is the crypto-mining operation’s location concerning?

The operation is near a Microsoft data center supporting the Pentagon and an Air Force base that controls nuclear-armed missiles.

Who raised the alarm about the operation?

Microsoft’s national security team alerted the Committee on Foreign Investment in the U.S. about the potential risks.

What potential threat does the mining operation pose?

The location could allow for comprehensive intelligence collection operations by the Chinese.


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