Arkansas lawmakers have introduced Senate Bill (SB 60), seeking to prohibit crypto mining operations within a 30-mile radius of US military facilities in the state.
Introduced on January 15 by Senator Ricky Hill and House Speaker Brian Evans, the bill aims to amend the Arkansas Data Centers Act of 2023 to address concerns related to security and noise pollution near military sites.
The proposed legislation applies to military bases, camps, hospitals, clinics, and arsenals. However, it includes a grandfathering clause allowing facilities operational before 31 December 2023, to continue functioning.
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Biden Administration Blocks China-Linked Crypto Mining Near Wyoming Military Base
The move echoes a May 2024 order from the Biden administration that blocked a China-linked crypto mining company from operating near a military base in Wyoming.
The Arkansas bill specifically targets a crypto mining facility under construction in Lonoke County near Little Rock Air Force Base, owned by Interstate Holdings, a Florida-based real estate investment firm.
The bill has sparked concerns among local officials. Cabot Mayor Ken Kincade highlighted the noise pollution caused by crypto mining operations, citing its impact on residents, wildlife, and the environment. Senator Hill underscored national security risks, questioning the proximity of the Lonoke County facility to the Air Force Base.
“Why did they pick this facility that’s less than five miles away from our air base? This is a national security concern,” Hill stated. Kincade added, “These centers cause loud noise disturbances and pollution that negatively affect our well-being.”
Dustin Curtis, Vice President of Interstate Holdings, opposed the legislation, claiming it would make Arkansas unique in implementing such restrictions.
He asserted the company’s Cabot facility adheres to all state and federal noise, environmental, and security regulations. Curtis also argued the noise level from the facility would be lower than the nearby state highway.
Noise pollution from crypto mining is not new in Arkansas. In October, Bitcoin mining firm NewRays accused local authorities of selectively enforcing noise regulations to target its operations.
The national conversation about crypto mining near military facilities gained traction after the Biden administration’s May 2024 order and criticism from lawmakers like Senator Elizabeth Warren.
She has previously expressed concerns about foreign-owned mining firms, stating, “They’re loud, they’re hot, and they consume enormous amounts of electricity, which can destabilize the power grid.”
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Public Bitcoin Miners Adopt Treasury Strategy
In 2024, Bitcoin miners adapted to rising competition and market volatility by embracing new strategies, including a notable focus on building their Bitcoin treasuries.
According to a 7 January 2025 report by NiceHash and Digital Mining Solutions, several public mining companies mirrored MicroStrategy’s approach by increasing their BTC holdings rather than selling their mined coins.
Companies like MARA Holdings, Riot Platforms, and Hut 8 even purchased additional Bitcoin using borrowed funds, signaling a strong commitment to this treasury strategy.
Beyond treasury strategies, diversification into high-performance computing (HPC) and artificial intelligence (AI) sectors emerged as a key trend among miners in 2024.
The report noted that US-based miners, in particular, turned to these sectors to offset the unpredictability of mining revenues. For instance, Hive Digital repurposed its Nvidia GPUs for AI tasks, generating over $2 per hour compared to just $0.12 per hour from crypto mining.
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