Bitcoin News Today: State Law vs. Local Needs: Texas Town Loses Battle to Regulate Bitcoin Miner

A rural Texas community's attempt to gain municipal status to regulate a nearby Bitcoin mine ended in defeat after residents voted against incorporation by a 25% margin. The failed effort, which aimed to create the City of Mitchell Bend to enforce noise ordinances, highlights the escalating tensions between cryptocurrency operators and local residents over environmental and health concerns, according to a DatacenterDynamics report.

The vote, held on November 3, came after months of legal battles between Hood County residents and Marathon Digital Holdings (MARA), one of the largest Bitcoin miners in the U.S. The company, which operates a data center at the former Wolf Hollow Gas plant in Granbury, has faced persistent complaints about noise pollution from its cooling systems. Residents reported sleep disturbances, vertigo, nausea, and other health issues linked to the facility's operations, according to KERA News.

MARA opposed the incorporation proposal, arguing it violated state law and was a "weaponized" use of municipal processes, according to a Coin Edition report. The company filed a 47-page lawsuit in October to block the election, claiming the move would harm its operations. However, a federal judge in Fort Worth rejected MARA's request for a temporary restraining order, stating the company failed to prove "irreparable harm," the ruling said.

Despite the legal setback, the incorporation effort lost decisively, with 52 of 138 votes in favor, according to The Texas Tribune. Proponents, including resident Danny Lakey, expressed disappointment but vowed to continue fighting for noise relief through ongoing lawsuits, including one led by environmental group Earth Justice, as reported by a KERA News report. Cheryl Shadden, a resident living directly across from the mine, emphasized that the community's goal was to "preserve the peace" they once enjoyed.

MARA celebrated the outcome, calling the incorporation attempt a "sham" and reiterating its commitment to "creating jobs and being a responsible neighbor." The company pointed to third-party noise studies showing its operations comply with Texas state limits, though one study noted the 85-decibel threshold was "permissive" compared to local standards, the DatacenterDynamics report noted.

Residents, however, remain unconvinced. Many argue that county-level regulations lack the authority to enforce noise controls, making cityhood their only viable option, advocates say. While the immediate path to regulation is blocked, advocates suggest the legal and political battle over cryptocurrency mining's environmental impact is far from over.