Jonesborough resident urges state to regulate Bitcoin mining

NASHVILLE — Jonesborough resident Kevin Hendricks urged state Legislators to regulate bitcoin mining facilities in the state of Tennessee. Hendricks appeared before the Senate Health and Welfare Committee Wednesday to testify to the negative effects of bitcoin mining. State Sen. Rusty Crowe, R-Johnson City, is the committee's chair, and state Sen. Bobby Harshbarger, R-Kingsport, is a member of the committee. Bitcoin mining facilities are industrial data centers filled with hundreds or thousands of machines which solve complex mathematical algorithms in order to produce bitcoin. These coins are extremely valuable — currently, one bitcoin is worth about $70,000. The facilities which create these bitcoins consume immense amounts of electricity. The U.S. Energy Information Administration estimated cryptocurrency mining comprised up to 2.3% of all U.S. electricity consumption in 2024. The computer fans also create a loud noise which can be heard continuously by nearby residents. Rural areas are especially prone to this noise pollution, as there are often zero noise ordinances on the books. The majority of these major mining operations in the state are located in East Tennessee. Countrywide, Tennessee also has a major share of the total number of mining operations in the United States. Hendricks said this is due to the state's lax oversight and regulations of cryptocurrency mining, as well as the cheap power that can be purchased from the Tennessee Valley Authority. He called on lawmakers to consider creating an electrical oversight authority to help regulate the issue. "In some cases, utilities have been very active with politicians," said Hendricks. "And without saying too much, I think it's going to take something on a statewide level to really reign in this industry." Hendricks also said these facilities don't bring many permanent jobs to the area once constructed, and because many of the owners of these facilities are remote, little of the profit from these mines stays in Tennessee. "They basically come here and use [our] resources," said Hendricks. "So it's really like a locust that comes in and attacks your corn crop." Crowe said the concerns are widespread, and more study is needed to determine the best path forward for regulating the energy consumption of bitcoin mining facilities and other data centers. "I do think there needs to be a great deal more study and a great deal more thought by city, county and state elected officials regarding the regulation and operation of these businesses in our communities," said Crowe. Hendricks' political activism began following the construction of a mining facility in Limestone in 2021. After pushback from residents, it is now slated to be decommissioned later this year. He said, following this, no mining operations are to be located in rural Washington County. In Mountain City, a proposed mining operation was shot down by significant opposition from the community. CleanSpark, the owners of the proposed mine, are revamping efforts to gain approval in rural Johnson County, outside the Mountain City limits. The Hawkins County Commission passed legislation to ban any bitcoin mining operations from occurring within the county. Unicoi County is currently studying the issue and developing policies to discourage mining operations, said Hendricks.