Hawkins County Reimposes Ban on Crypto Mines, Data Centers
Cryptocurrency mines use specialized computers to validate blockchain transactions, making electricity demand and cooling-fan noise recurring flashpoints for local governments. In Hawkins County, Tennessee, the dispute centers on ExoticRidge Crypto Company LLC’s proposed 8-megawatt Bitcoin mine near Bulls Gap. The Kentucky-based company says it would generate power on site from ethane produced by an adjacent natural-gas-liquids plant, avoiding the public grid, while nearby residents and county officials have raised concerns about noise and the project’s broader operating impact.
The Hawkins County Commission voted unanimously on July 27, 2026, to prohibit the establishment and operation of cryptocurrency mining facilities and data centers in the county’s unincorporated areas. The measure renews and clarifies a blanket ban approved on September 22, 2025. ExoticRidge sued Hawkins County in the U.S. District Court for the Eastern District of Tennessee on March 31, 2026, arguing that the earlier resolution violated state law and constitutional protections. The new vote leaves the underlying federal dispute unresolved.
All Coverage
1 original reportsThe Backstory
The history behind this eventTennessee Bans Cryptocurrency ATMs Statewide to Combat Fraud
Cryptocurrency ATMs allow people to use cash to buy virtual assets and send them to designated wallets. But because the transactions are irreversible and fund flows are difficult to trace, the machines are frequently exploited in government-impersonation, investment and elder-fraud schemes. The Federal Bureau of Investigation recorded $333 million in losses from related scams in 2025, prompting states to tighten regulation.
Tennessee Governor Bill Lee signed HB 2505 on April 13, 2026, with the law taking effect on July 1 and making Tennessee the second U.S. state after Indiana to impose a comprehensive ban on the machines. Installing, hosting or operating one constitutes a Class A misdemeanor. The state had about 185 machines before the law took effect, and a federal court rejected a request from operators including CoinFlip to block its enforcement.
Subscribe to Mark Radar Weekly
Every Friday, the week's strongest signals in your inbox. Unsubscribe anytime.