Proposal for Minnesota crypto mining operation pulled after public opposition

Windom residents feared noise pollution from data facility proposed by Revolve Labs.

The Minnesota Star Tribune
September 25, 2024 at 8:16PM
Revolve Labs representative Jeff St. Onge, center left, answers questions in August from skeptical citizens of Windom, Minn., about a proposed crypto mining facility near the city. The company pulled its application for the facility on Sept. 24, 2024, Cottonwood County said.

A crypto mining company has ended its efforts to build a facility at a site in rural southwest Minnesota.

The company, Colorado-based Revolve Labs, withdrew its conditional use application for a crypto mining facility outside Windom, Minn., via an email sent Tuesday to the city and reviewed by the Star Tribune.

The decision came in response to feedback received by the company, Jeff St. Onge, senior operations manager at Revolve Labs, said Wednesday in an email.

“Our commitment is to operate in a way that aligns with community values and priorities, and we recognize that collaboration is essential to achieving this,” St. Onge said.

Revolve Labs, formerly known as Bit 49, had said the project would generate $35,000 a month in service fees for Windom, located about 65 miles south of Mankato.

The proposal faced widespread opposition at a late August public hearing of about 100 residents, many of whom voiced skepticism about the company’s claims.

The most common concern was noise. Crypto mining uses huge amounts of computing power to solve complex mathematical puzzles and produce cryptocurrency such as Bitcoin, a digital currency that can be traded outside the normal banking system. The machines used for these operations operate around the clock and need to be cooled by banks of fans.

Windom residents brought up Revolve’s crypto mining operation in Glencoe, Minn., that has faced complaints by residents of excessive noise.

Others spoke of the effect on home values, with some speakers questioning whether crypto mining benefits society. The meeting ended with a recommendation for a moratorium on conditional-use permits for crypto mining in the county.

Representatives for Revolve Labs had been adamant that they had ways of preventing noise pollution at the proposed Windom location, located near Cottonwood Lake.

On Wednesday, reaction to the news was mixed. “They are overjoyed the current worry is over,” said Hilary Mathis, who owns a shop in Windom and is running for city mayor.

Jason Sykora, superintendent for the city’s electrical utility, said he was disappointed that more people didn’t give the proposal a fair shot. Sykora said the money generated by the project would have provided badly needed funding for the city.

“It would have flattened out our electricity rates for the next three years possibly,” he said.

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Jp Lawrence

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Jp Lawrence is a reporter for the Star Tribune covering southwest Minnesota.

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