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In a heated legal battle, Bison Blockchain has filed an emergency motion to freeze the proceeds from MineOne’s recent sale of two Wyoming bitcoin mining sites to <a href="https://ultramining.com/news/en/cleanspark-doubles-down-on-bitcoin-mining-with-55m-expansion/" rel="noopener noreferrer nofollow">CleanSpark</a>. The motion, filed on May 15, alleges that MineOne made “categorically false” representations in the sale agreement, which occurred just days before the Biden administration issued an executive order halting MineOne's operations due to national security concerns, according to <a href="https://theminermag.com/news/2024-06-06/miner-weekly-bison-mineone-bitmain-bitcoin-mining/" rel="noopener noreferrer nofollow">TheMinerMag</a>.
The $18 million sale was announced on May 9, with CleanSpark purchasing the sites four days before the executive order demanded that MineOne divest its assets. This order was prompted by concerns over MineOne’s ownership by Chinese nationals and the sites' proximity to a U.S. Air Force base.
Bison Blockchain's legal troubles with MineOne began in May 2023 when Bison accused MineOne of breach of contract, seeking $39 million in damages. Bison claims that MineOne falsely stated in the sale agreement with CleanSpark that no litigation was pending against them.
The origins of the dispute trace back to bullish plans during the 2021 market rally. Bison, founded by Michael Murphy, Emory Patterson, and Neil Phippen, won a bid from Black Hills Energy for up to 75 MW of electrical power in September 2021, aiming to build Wyoming’s largest mining facility. Bison entered discussions with MineOne for a partnership to develop the North Range and Campstool sites.
In June 2022, Bison and MineOne entered a service contract with MineOne financing and owning the developments, while Bison managed the implementation and operations. However, tensions arose when MineOne violated the Power Purchase Agreement (PPA) by issuing an unapproved press release, causing regulatory issues.
Further complications arose when MineOne engaged <a href="https://ultramining.com/en/manufacturers/bitmain/" rel="noopener noreferrer nofollow">Bitmain</a> without Bison’s involvement. In January 2023, MineOne struck a service agreement with Bitmain to operate the two sites. By March 2023, MineOne informed Bison that Bitmain demanded Bison’s removal from the project, leading to a proposed amendment that significantly reduced Bison’s role and compensation.
This led to Bison filing a lawsuit against MineOne and Bit Origin in May 2023, later adding Bitmain as a defendant in October 2023. The lawsuit claims damages of nearly $39 million due to the alleged breach of contract and subsequent actions by MineOne.

Bison Seeks Court Order to Freeze MineOne’s Proceeds from Wyoming Sales

Ultramining_Eng

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