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David Nicholas: In the eastern UP, a legal showdown is underway between the owners of a bitcoin mine and the local pre-K-through-5 school. Lake Superior Academy of Dafter Township outside of Sault St. Marie sued Odessa Partners, alleging the noise from the mine is disrupting learning. WCMU's AJ Jones recently spoke with me on the latest developments in the lawsuit and explains why this may be only the beginning of the legal dispute.
Well, thanks for joining us, AJ and I guess to start out, can you give us some context on this? Who are the parties and why are they suing each other?
AJ Jones: So David, Lake Superior Academy of Dafter Township is a pre-K-through-5 Montessori school that focuses on outdoor learning experiences. Across the street is a bitcoin mine run by Odessa Partners LLC, a Philadelphia-based software company. The Bitcoin mine is six metal storage units housing big computers running 24/7, solving complicated math equations to earn bitcoin.
The school says that the mine is too noisy and it's disrupting their ability to teach their students. Bitcoin is big business, right? The cryptocurrency recently set a record amount relative to the dollar. One Bitcoin is worth over $120,000. So back to the suit. The school says that they have struggled to find a solution with Odessa to quiet the noise, and they filed a civil suit, hoping to enforce a solution to calm the noise.
DN: Well then regards to the lawsuit, where is it right now? Can you give us a brief timeline on this?
AJ: So in late June, the school filed the suit to Chippewa County Civil Court, who immediately issued a 14-day temporary restraining order, and that forced the mine to close, citing immediate harm to the school. And that temporary restraining order was issued without notice, meaning Odessa didn't get to reply.
A tentative date for another hearing was set for August 13, 2025. So, in response, on July 7th, Odessa filed a motion to have that temporary restraining order dissolved. It was not acted upon. So, the next step? Odessa filed suit in the Western District of Michigan, in a federal court.
What Odessa is seeking is the case being totally dissolved and the temporary restraining order revoked. They say it isn't specifically noted as to what the harm in question is in the initial order. They also say the company was indeed taking steps to mitigate the harm, and they constructed a wall of hay bales to limit the sound.
Odessa says that brought the sound down to 43 decibels, which is about comparable to what you'll hear on a standard street. Odessa is also seeking financial relief from the school. They say the closures have cost the company $183,889.39. The case will continue in federal court, so the initial civil case in Chippewa County is currently on pause.
DN: Well you set this up talking about the Montessori pre-K-through-5 school. If we zoom out from there, are there other people that are also complaining about bitcoin and the mining noise?
AJ: Sure. Disagreements over mining noise have become a theme all over the country. We've seen stories in places like rural Arkansas and Texas, raising issue with the sound. The thing is that rural areas are really ideal for bitcoin mines like this, because they often have less regulatory hurdles.
There's plenty of space and cheaper energy, and bitcoin mines need lots and lots of energy. So don't be surprised if stories like this become a reoccurring conflict in other parts of the country.
DN: There's lots of pieces to this, certainly, but we appreciate the update at least where we stand right now. And thanks for your reporting, AJ. We appreciate it.
AJ: You're welcome.