Arkansas city rejects crypto mining proposal after community pushback

The planning commission of Vilonia, Arkansas, unanimously rejected a proposal to establish a cryptocurrency mining facility within the city limits, following strong opposition from residents.

According to local reports, the decision came after weeks of community pushback, where citizens voiced concerns over potential noise pollution, increased energy consumption and the overall environmental impact associated with crypto-mining operations.

During public meetings, Vilonia residents expressed concern that the mining operation could disrupt the town’s quiet atmosphere and strain local infrastructure.

Many pointed to examples from other regions where similar facilities led to rising electricity costs and constant noise from mining rigs.

“I just want to ask, like, did we make a mistake moving here? We’re not asking these people to come here. I grew up here. I graduated from Vilonia, and we [are] Arkansas, the natural state, not Arkansas, the Bitcoin state,” one community member told THV11.

Vilonia community members oppose a new crypto mine in their town. Source: YouTube

Related: Crypto startups no longer welcome in Nvidia’s accelerator program

Vilonia has confronted the prospect of crypto mining before. In previous years, residents expressed disinterest in hosting miners, citing long-term sustainability concerns and minimal local economic benefits.

In 2023, the city’s planning commission denied Vilo AR permission to build a crypto mine in town and revoked its permit permanently.

The same year, Vilonia residents voiced strong opposition to a crypto-mining facility proposed by Green Digital near residential areas, citing concerns over constant loud noise from powerful mining computers and potential ties to the Chinese Communist Party.

In 2024, the Arkansas State House passed two bills that restrict cryptocurrency mining within the state.

Related: Bitdeer turns to self-mining Bitcoin, US operations amid tariff tumult — Report

In January, Arkansas lawmakers introduced a bill that would ban crypto mining operations within 30 miles of any US military facility in the state.

Senate Bill (SB 60) was introduced by Senator Ricky Hill and House Speaker Brian Evans, aiming to amend the Arkansas Data Centers Act of 2023 to keep crypto mining facilities away from military installations. 

However, the Arkansas Senate’s City, County and Local Affairs Committee eventually rejected the bill.

The opposition to crypto mining centers in Arkansas follows a broader trend across various US municipalities where crypto-mining initiatives have faced increasing scrutiny.

In October 2024, a group of residents in Granbury, Texas, filed a lawsuit against Marathon Digital, alleging that its mining facility generated too much noise.

The lawsuit claimed that residents were experiencing physical symptoms from the noise, including fatigue, headaches, nausea, hearing loss, memory issues and even psychological problems.

Magazine: Crypto AI tokens surge 34%, why ChatGPT is such a kiss-ass: AI Eye