WASHINGTON (CN) — President Joe Biden on Monday ordered the operators of a cryptocurrency mining facility near an Air Force base to sell off their interest in the company because of their ties to China.
Biden in his executive order cited national security concerns about the company and its affiliates operating near Francis E. Warren Air Force Base, a facility that controls nuclear-armed intercontinental ballistic missiles, outside Chyenne, Wyoming.
The order cites the main company behind the city as MineOne Partners Limited, a company registered in the British Virgin Islands. The others cited — MineOne Cloud Computing Investment I LP, MineOne Data Center LLC and MineOne Wyoming Data Center LLC — are registered in Delaware.
Biden didn’t name the owners, nor did the Treasury Department in a subsequent news release, but officials say MineOne is “ultimately majority-owned by Chinese nationals.”
State and federal officials have been concerned about the facility since Microsoft, which owns a nearby data center, reported it in 2022 to the interagency Committee on Foreign Investment in the United States, according to Cowboy State Daily and The New York Times. Microsoft warned that the facility could allow for intelligence operations on the Air Force base.
MineOne acquired property within one mile of the facility in June 2022. Its purpose was for cryptocurrency mining, which is the process of finalizing transactions using cryptocurrency.
Biden’s order prohibits MineOne’s acquisition of the property or its ownership of any interest in it. Within 90 days, the owners must remove “all items, structures, or other physical objects or installations of any kind.” They are prohibited from accessing it and must sell or transfer all ownership to other entities within 120 days.
The committee identified the transaction as a national security risk because of its proximity to the base and the presence of specialized equipment brought in for its operations.
The committee can enter into a negotiated agreement with business entities to mitigate national security concerns for certain transactions. However, officials determined it would be impossible to allay the risks. In such a case, the transaction is referred to the president, who can decide whether or not to block it.
“If … parties are unwilling or unable to fully address national security risks, [the committee] won’t hesitate to exercise the full scope of its authorities, including presidential referrals, to address the risk,” said Paul Rosen, assistant treasury secretary for investment security.
Treasury Secretary Janet Yellen said in a statement that the order highlights the committee’s “critical gatekeeper role” in national security.
“Today’s divestment order underscores President Biden’s steadfast commitment to protecting the United States’ national security,” she said.