In a narrow vote held November 4, residents of the unincorporated community known as Mitchell Bend in Hood County, Texas, rejected a bid to become an official city in order to gain municipal authority to regulate noise from a nearby cryptocurrency mining facility. Only about 38 % of voters backed the proposal, falling short of the threshold needed for incorporation.
Key Facts
- A total of 138 ballots were cast, with 52 in favor and 86 opposed to forming the city.
- The incorporation bid was motivated by repeated complaints from residents that the mining site, operated by MARA Holdings (formerly known as Marathon Digital), was generating persistent noise levels that disrupted everyday life.
- Under Texas law, counties generally do not have the authority to enact municipal-style noise ordinances—only incorporated cities do. That legal gap is why residents sought to incorporate.
- The proposed municipality would have covered approximately two square miles and had an estimated population of around 600 people.
- The mining facility in question reportedly runs about 60,000 machines (miners) and uses large-scale cooling fans, claimed by some residents to produce a near-constant “hum” or roar.
Why It Matters
- Local regulatory power: By remaining unincorporated, residents currently lack direct municipal control over noise or industrial zoning in their area. The failed incorporation means the community will continue to rely on the county and state frameworks.
- Industry vs. community tensions: The case underscores a growing national phenomenon where large-scale crypto-mining operations locate in rural jurisdictions—drawn by low electricity costs, lighter regulation and available land—while local communities struggle with impacts such as noise, traffic, environmental strain and infrastructure demands.
- Precedent for mining regulation: The outcome may influence other communities hosting or anticipating crypto-mining sites. It signals how challenging it can be to secure local regulatory tools, especially when governance boundaries, state law and industry push-back intersect.
- Community trust & quality of life: Residents stated issues such as sleepless nights, hearing problems and decreased property values were among their main grievances. Some said that mitigation steps by the mining operator—such as a taller wall and conversion of some fans to liquid cooling—did not sufficiently alleviate the problem.
Stakeholder Perspectives
- A representative of the mining firm MARA stated it was “pleased that Hood County voters saw through the sham incorporation effort and rejected it at the ballot box,” describing the attempt as a weaponisation of city-status to regulate a lawful business.
- A resident, Danny Lakey, who lives approximately half a mile from the mining facility, said the result was “very disappointing” and vowed to continue exploring alternative paths to regulate the noise impact.
What Happens Next
- Without incorporation, residents remain dependent on county governance and state statutes to address noise, zoning or industrial regulation issues. County officials and the state legislature may come under increasing pressure to consider granting counties more regulatory power in similar contexts.
- Legal and advocacy channels remain active: the community has ongoing litigation (involving the environmental law-group Earthjustice) and may pursue injunctions or noise-abatement claims tied to the mining site.
- Mining site operations may still face public pressure, community negotiations or future regulatory changes—even if municipal incorporation failed.
- The decision is also likely to inform how rural jurisdictions with mining or data-centre expansions approach permitting, community consultation and industrial siting decisions going forward.
Bottom Line
The defeat of the Mitchell Bend incorporation bid illustrates the hurdles small rural communities face when attempting to gain regulatory control over industrial neighbours such as cryptocurrency mining sites. While the vote does not end the noise dispute, it limits the community’s immediate legal tools for local ordinance enforcement. The broader clash between crypto-industry growth and local governance remains a focal challenge in Texas and beyond.
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