President Joe Biden's recent order directed a Chinese-backed cryptocurrency mining company to sell its land near a Wyoming nuclear missile base due to national security concerns. The company, MineOne, acquired the real estate in June 2022, positioning its operations within a mile of the Francis E. Warren Air Force Base, described by the White House as a "strategic missile base and key element of America's nuclear triad." The presidential order stated that MineOne's site contained "specialized and foreign-sourced equipment potentially capable of facilitating surveillance and espionage activities."
President Biden cited "credible evidence" indicating that the company, primarily owned by Chinese nationals and registered in the British Virgin Islands, "might take action that threatens to impair the national security of the United States." MineOne has been directed to divest from the land within the next 120 days and to remove specific improvements and equipment from the property. The company has not yet responded to CNBC's request for comment.
The Biden administration's action comes amid a broader crackdown on Chinese companies in the U.S., especially ahead of the upcoming presidential elections and amid tensions between the two largest economies. In April, President Biden signed a law requiring the divestiture of social media platform TikTok from its Chinese parent company, ByteDance, on national security grounds. On Tuesday, new tariffs on various Chinese imports, including electric vehicles and medical supplies, were issued by the administration.
The decision to target MineOne follows an investigation by the Committee on Foreign Investment in the United States (CFIUS), a government agency chaired by the Treasury Department that examines corporate deals for national security issues. A 2018 law granted CFIUS the authority to review property transactions near sensitive U.S. facilities, including Francis E. Warren Air Force Base.
In September, President Biden issued an executive order directing the committee to consider more national security risk factors in their assessments. CFIUS is also investigating TikTok. The White House order revealed that MineOne's property purchase was not reported to CFIUS until after the agency began its investigation following a public tip-off.
In a statement, Treasury Secretary Janet Yellen emphasized the crucial role CFIUS plays in ensuring that foreign investment does not undermine national security. China has also heightened scrutiny of U.S. companies in recent years, citing national security concerns. The country has expanded its laws against sharing state secrets to include a broad category of "work secrets" and has imposed restrictions on some U.S. tech companies, such as Micron, from selling to operators of critical infrastructure in the country, following security reviews. Additionally, China cracked down on several foreign consulting firms last year.