Of all the companies that have come to North Carolina in recent years, from Toyota to Google to Amazon, cryptomining operations don’t exactly spring to mind.

But the state, because of its vast swaths of land, is increasingly being targeted by these outfits looking to operate here — much to the chagrin and consternation of local residents.

But as politicians and lawmakers cozy up to crypto, these mining operations are of ever-increasing importance. 

When it comes to the “mining” of digital currency, don’t think of it like digging for coal. The mines authenticate crypto transactions and add these transactions to what’s known as a “blockchain.” Without mining, Bitcoin and other digital currencies would cease to function.

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Which brings us to North Carolina. When digital currency mining was outlawed in China during 2021, many cryptomining operations migrated to the United States. Crypto companies are attracted to sparsely-populated areas where power — of which they need a staggering amount — is affordable and abundant. 

As a bonus, there aren’t many people around to complain about the thunderous noise, which comes from the whirring of high-speed fans that run day and night to cool the mine’s computers. 

Recently, a cryptomine operation appeared ready to open in Burke County until the Town Council passed a set of restrictive zoning laws — after a group called the National Coalition Against Cryptomining drew attention to the company’s plans.

Sounding the alarm

It’s hard to sleep when you live near a cryptomine. 

People compare the sound of the fans to a roaring jet engine. Or a continually crashing waterfall. Or a motorcycle endlessly revving its engine.

Cyndie Roberson left Cherokee County to escape the din of the mines. She has seen others break down in tears at public meetings when describing the noise.

For Roberson, cryptocurrency mining is environmentally destructive and socially disruptive. The operation only benefits distant crypto investors, leaving the community itself in a noisy confusion. It is about as welcome as a high-speed racetrack in her backyard.

To the untrained eye, cryptomines look like unremarkable rows of storage containers. There are no employees. The computers loudly hum along on their own, verifying crypto transactions by attempting to solve an endless stream of complex mathematical puzzles.

When the computers solve a puzzle correctly, it verifies a group of cryptocurrency transactions and adds it to the public ledger known as the blockchain. As a reward for the intensive work of verification, the cryptomining company receives newly-minted cryptocurrency and transaction fees. To do this work, the computers use a tremendous amount of electricity and generate a lot of heat, which explains the need for the deafening fans. 

One cryptomine uses hundreds of megawatts of power per hour. Consider that one megawatt can supply more than 400 homes. 

For this reason, cryptominers like to set up their facilities near substations or other sources of power. 

Nine of North Carolina’s mountain counties, including Cherokee, now have a ban or protective ordinance against cryptomining. But by the time Cherokee County outlawed cryptomining in 2023, three mines were already in operation and not subject to the ban. 

Today, they continue their intense blare.

Too legit to quit

Digital currency is gaining legitimacy in North Carolina. House Bill 920 aims to transform cryptocurrency into valid, legal tender in the state. Another bill — approved by the House — allows NC Treasurer Brad Briner to place up to 5% of the state’s investments into crypto. 

But even though Briner thinks crypto is a smart investment for North Carolina, he doesn’t necessarily want it to be mined in the state. 

“I’m concerned about cryptomines,” Briner told Carolina Public Press. “If your business is not really employing people and just consuming a ton of cheap power, that’s not the best business for us to recruit.”

At the federal level, President Donald Trump promised to make the United States the “crypto capital of the world,” establishing a Bitcoin reserve and loosening all kinds of restrictions on digital currency.

North Carolina doesn’t keep a registry of cryptomines, so it’s hard to know how many are operating across the state. 

Cryptomining controversy

Despite the growing fondness of crypto in Raleigh and Washington, local governments are pushing back against allowing these operations to exist within their borders.

When Digihost, a Canadian cryptomining company, bought a piece of land inside the limits of Hildebran, a small Burke County town northwest of Charlotte, the transaction initially went unnoticed by many.

The town had no idea Digihost was planning to build a mine on the land the company bought a couple years back. 

Once alerted to the company’s plan, however, Hildebran acted swiftly, passing restrictive zoning ordinances against cryptomining at a Town Council meeting in late April. The laws restrict the decibel level to an almost unattainable quiet for cryptomines — 55 decibels, which compares to the sound of a household refrigerator. Normal cryptomines can reach 95 decibels, which at sustained exposure, can cause permanent hearing loss.

But the mines aren’t expressly banned, and Hildebran is leaving the door open.

“At this time, the town has no official knowledge of when or if any such operation will begin,” according to a statement from Hildebran’s Town Council. “Our goal with the proposed ordinances is to keep cryptomining operations sound-neutral … and not to impact the power usage of citizens and industries in town.”

The zoning also limits the hours of operation, which bars the mine from running overnight. 

Roberson says this is “game over” for cryptomines.

That may be true in Burke County.

But not necessarily in North Carolina.

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