A closer look at crypto mining sites as it raises concerns for many Arkansans

LITTLE ROCK, Ark. – The rising crypto world is a seemingly complex one, but the concerns from many Arkansans are simple: What’s going on at these crypto mining sites, and why all the noise?

KARK 4 News has an inside look at the site where the newly emerging world of bitcoin is said to be giving Wall Street a run for its money.

“Our government is printing trillions of dollars every day. Bitcoin is what we call sound money,” Arkansas Blockchain Council president Ben Smith said.

That sound money is rapidly influencing financial systems across the globe, evolving into the cryptocurrency people see or hear today.

“People, they don’t understand, well what the heck does that mean,” Rep. French Hill (AR – Rep.) said.

Smith tried to answer that question with a tour of a Bitcoin facility.

“This is a building full of computers that are running a global algorithm to mine bitcoin, searching for bitcoin to solve a math equation,” Smith explained.

Similar to stock, you can buy a bitcoin. Each computer represents bitcoin that people own and they’re all searching for the same winning block every 10 minutes.

“One computer in the whole world will find the answer to the equation and when it does that, you’ll get rewarded a block,” Smith said.

The blocks amount to bitcoins seen as forms of virtual money in cryptocurrency. There is a growing range of businesses accepting cryptocurrencies as payments, from everyday items to luxury purchases.

Smith explained that one block was worth $205,000 or 3.199 bitcoin.

“One of these guesses about 200 trillion numbers a second,” he added.

The computer’s work results in a lot of heat from each one, which is where the noise comes into play. Fans are set up to cool off the computers by helping to push exhaust heat out and off the machinces.

While the site might seem loud, the noise fades further away from the property.

For some other crypto mines going in around the state, there is a concern that the size of the site results in less space for the noise to be dissipated.

For more than a year, many neighbors living near sites of cryptomining in Arkansas have tried to put an end to the noise.

“It is literally in our backdoor,” Lyle Lindquist, who lives near the Vilonia crypto mine, said. “It doesn’t shut off. It’s 24/7.”

Another concern is determining who owns the sites. Attorney General Tim Griffin’s office is currently investigating a few of the sites, looking to force any foreign ownership off the natural state’s land.

“We don’t want their problems to reflect on us and our investments,” Smith said.

In a recent special session, lawmakers passed new restrictions on mining operations after pushback over legislation passed in 2023. This gave some power back to local governments to step in.

“We’ve never seen anything quite like this in our state before,” Rep. Jeremiah Moore said.

Legislation on the federal level is also in the work, but Hill said Capitol Hill’s focus is broader.

“In Congress, we’re trying to create a digital framework for all digital assets,” Hill said.

Congress is also working on a bill that would implement nationwide regulated crypto services, backed by the U.S. Treasury.

“As more adoption takes place, the value should go up. Bit coiners are betting on that future adoption,” Smith said.

That is a trajectory both Smith and Hill say indicates it’s only the beginning of the crypto world.

“Wall Street closes,” Smith said. “Bitcoin never closes.”

For the latest news, weather, sports, and streaming video, head to KARK.