Revolve Labs Withdraws Bitcoin Mining Facility Application

Colocation provider Revolve Labs has withdrawn its application for a Bitcoin mining facility outside Windom, a town in rural southwest Minnesota, following residents’ concerns about noise and home values.

The decision was reported by local newspaper The Minnesota Star Tribune. Jeff St. Onge, Revolve Labs’ senior operations manager, stated, “Our commitment is to operate in a way that aligns with community values and priorities. We recognize that collaboration is essential to achieving this.”

Revolve Labs, formerly known as Bit 49, said the facility would have generated $35,000 per month in service fees for the town. Jason Sykora, superintendent for the city’s electrical utility, noted it would have helped stabilize electricity rates for the next three years.

Despite promises to mitigate noise pollution from proposed air-cooling fans, concerns remained paramount. Residents cited complaints from an existing facility in Glencoe, Minnesota. During a public hearing in late August, community members expressed worry about decreased property values and questioned the overall benefits of crypto mining, recommending a moratorium on such operations.

Responses to the decision were mixed. Local shop owner Hilary Mathis, who is running for mayor, stated, “[Residents] are overjoyed the current worry is over.” Conversely, Sykora lamented that more people didn’t give the proposal a chance and highlighted the lost funding potential for the city.

Revolve Labs operates multiple Bitcoin mining facilities across the U.S., offering parts, repairs, and hosting services, with a capacity of 537 PH/s. In March, the firm signed an agreement with public Bitcoin miner MARA for site management and support services.

Unintended Consequences of Bitcoin Mining Shutdowns

The decision by Revolve Labs follows a similar situation in Norway, where residents of Stokmarknes shut down a Bitcoin mining facility due to noise complaints. Following the closure, they faced a 20% spike in energy bills as the local power company sought to recover lost revenue.

Critics of Bitcoin mining point out its high energy consumption and noise pollution, while supporters argue it provides significant benefits in areas with surplus energy, helping to stabilize the grid and reduce overall consumer costs. In Texas, Bitcoin miners have helped lower electricity prices by distributing fixed grid costs more broadly and providing demand flexibility.

Some residents may accept higher energy costs to avoid the noise from Bitcoin miners, but for others, this unintended consequence adds pressure amidst rising living costs.