the mining company in China closed by Biden will be transferred to the Americans

A few days ago, US President Joe Biden prevented a Chinese company from building a Bitcoin mining farm near a nuclear missile base in Wyoming.

The decision was related to national security concerns related to the plant’s proximity to a major military installation, as the mining company’s ownership would have been indirectly linked to China.

However, yesterday it was discovered that this same company, MineOne, had now sold the land to another Bitcoin mining company, this time American.

Biden’s Initiative: China’s Bitcoin Mining Farm Transfers to Americans

The US President opposed the construction of a Bitcoin mining farm within a mile of the Cheyenne military base using the powers of CFIUS (Committee on Foreign Investment in the United States).

These powers allowed him to prevent the acquisition of the land by a Chinese-linked company (MineOne).

This is already the eighth time that Biden has used the powers of CFIUS to prevent takeovers and activities related to China in the US, so it was not an initiative against Bitcoin mining.

The only problem was the acquiring company’s ties to China, and of course its proximity to the Cheyenne military base in Wyoming, which houses the Minuteman III intercontinental ballistic missiles (ICBM).

This suggests that Biden should not oppose the construction of the mining company if the ownership is American.

The pivot point

Yesterday it was discovered that in fact a few days before the blockade imposed by Biden, the land on which the Cheyenne mining farm was to be built had been purchased by an American mining company, CleanSpark, listed on the Nasdaq with the ticker CLSK.

In the official announcement, CleanSpark states that it has reached an agreement to acquire 75 MW of Bitcoin mining sites in Wyoming for a total of $18.75 million.

The company claims to have entered into definitive agreements to purchase two Bitcoin mining sites in Wyoming, with 75 MW of power already available and the potential to expand by another 55 MW.

One of these would be the website owned by MineOne, near the Cheyenne military base that Biden blocks.

The curious thing is that the sales agreement with the American company Cheyenne would have taken place less than a week before the lockdown imposed by Biden.

While it’s just an agreement and the sale hasn’t been finalized yet, Biden’s bloc sounds a bit strange.

Indeed, one could also imagine that the president did not know about this agreement, but perhaps it is more likely that his initiative was precisely aimed at forcing MineOne to accept the sales agreement to the American company CleanSpark.

CleanSpark, on the other hand, has indicated that it is not aware of the blockade and is nevertheless prepared to make the takeover.

Clean spark

CleanSpark owns and operates eight different data centers in the southern United States, totaling almost 400 MW. Of this, 50 MW is located in a data center in New York State, to which the 75 MW already available in Wyoming will be added, along with another 55 MW at the new location.

The two new facilities in Wyoming will add more than 7 EH/s to CleanSpark’s hashrate, while the company had previously purchased three other Bitcoin mining sites in Mississippi with a total hashrate of 2.4 EH/s.

Actually, CleanSpark is one of the largest BTC miners in North America.

The CEO, Zach Bradford, stated:

“Just three months ago we made the leap and expanded into Mississippi. Today I am pleased to announce that we are continuing our journey with our expansion westward into Wyoming. Diversifying our portfolio is an integral part of our strategy and we are well positioned to benefit from similar acquisitions in the wake of the halving.”

The price of CLSK shares on the stock market has been moving sideways since mid-February.

The absolute peak was reached in 2018 and briefly surpassed $42 in 2021.

During the 2022 bear market, there was a real crash, causing the price to fall below $2, but there was a recovery between 2023 and 2024.

Last year, the price of CLSK stock returned above $10, and this year it has risen to above $24 in March.

Since then, the price has fallen below $17, which is much higher than the bear market bottom, but still significantly lower than the 2021 highs.

It is worth noting that CleanSpark is valued on the stock exchange at around $3.7 billion, while for example Marathon Digital Holdings (MARA), the benchmark for US Bitcoin mining companies, is valued at almost $5.4 billion. The other major competitor, Riot Platform (RIOT), is valued at less than 3 billion euros.