Judge denies Bitcoin company's request to block local election in Hood County
A federal judge in Fort Worth denied a Bitcoin company’s request to block a rural community in Hood County from voting whether to become a new city.
Judge Reed O’Connor rejected Marathon Digital Holdings’ request in the federal Northern District of Texas for a temporary restraining order on an election for Mitchell Bend to incorporate as Texas’ newest city and regulate the company’s nearby Bitcoin mine.
O’Connor said in the ruling that the order was denied because Marathon Holdings, or MARA, couldn’t prove a “substantial threat of irreparable harm and that the issuance of a preliminary injunction will not disserve the public interest.”
“[E]ven if incorporation succeeds—and it may not—Plaintiffs can still challenge the validity of the election and the creation of ‘Mitchell Bend’ after the results are certified,” O’Connor wrote in the ruling.
The Mitchell Bend incorporation question is still on the ballot on Hood County’s website as of Monday, Nov. 3.
The Bitcoin mine, which MARA has owned for almost two years, has been a source of noise pollution that residents say has been the cause of a range of health issues including lack of sleep, vertigo, nausea and motion sickness.
Mitchell Bend residents who have been leading the effort to incorporate their community said they’re looking forward to seeing the election through on Tuesday.
Resident and advocate Danny Lakey told KERA he expected the judge’s ruling.
“State law is pretty clear when filing an incorporation,” he said. “The process is very clear, very plain and we followed it to the letter.”
MARA’s lawsuit called the election “illegal” and accused Hood County officials of “colluding” with residents to hold the election.
“We believe municipal incorporation should serve the genuine needs of communities, not be used to target or weaponize the process against law-abiding businesses,” a spokesperson for MARA said in a previous statement. Officials from Hood County did not respond to a request for comment for this story.
But residents told KERA that incorporating as a city is the only tool at their disposal to be able to control the noise levels coming from the operation.
Cheryl Shadden, who lives across the street from the mine, said she doesn’t know how the election is going to go.
“We've tried everything else to try to help this area,” Shadden said. “I'm praying to God, praying to God that there'll be some relief and you know we just want to sleep in our beds in peace at night.”
Judge O’Connor added in his ruling that MARA can still challenge the results of the election if the Mitchell Bend residents vote to incorporate.
"It's important to recognize that the court did not rule on the merit of the underlying evidence, rather clarify that any challenge must come after the election," said a spokesperson for MARA. "We intend to vigorously defend against any attempt to weaponize local government against law-abiding businesses."
Pablo Arauz Peña is KERA’s growth and infrastructure reporter. Got a tip? Email Pablo at
KERA News is made possible through the generosity of our members. If you find this reporting valuable, considermaking a tax-deductible gift today. Thank you.
Content Original Link:
" target="_blank">
