GRIID to Extend Tennessee Bitcoin Mining Site to March 2026

Ohio-based bitcoin mining company GRIID is poised to continue its operations in Limestone, Tennessee until March 28, 2026, pending court approval of its settlement with the local government.

GRIID said in a Nov. 1 filing that the Washington County Commission, representing the Washington County government, had approved its settlement offer on Oct. 30 to resolve an ongoing lawsuit related to alleged noise complaints and zoning rule violations.

The settlement will permit GRIID’s fully owned subsidiary, Red Dog, to maintain its existing Limestone site until March 28, 2026. In exchange, Red Dog will pay $12,500 to the local government after the court dismisses the case.

Additionally, Red Dog and BrightRidge will share the cost of internet service for Limestone residents living near the mining site, with Red Dog contributing $75,000. If Red Dog continues its operations after March 2026, it will incur a penalty of $100 per day payable to the county.

The final settlement is anticipated to take effect by the end of November 2023, GRIID said in the filing. As previously reported, GRIID’s blank-check special purpose acquisition company (SPAC) has scheduled a shareholder meeting on November 30 to vote on the merger with GRIID to go public.

According to GRIID, the company currently operates 68 megawatts of mining capacity located in New York and three sites in Tennessee.

GRIID’s legal dispute with the local county government stemmed from noise complaints lodged by residents in the community.

Red Dog initially entered into an energy contract with BrightRidge in September 2020, allowing for a peak capacity of 25 megawatts in Limestone to operate its bitcoin mining site near a BrightRidge substation.

In August 2021, Red Dog began receiving noise complaints from residents. Three months later, Washington County filed a complaint against BrightRidge and Red Dog, accusing them of violating the county’s zoning rules by operating a bitcoin mining data center.

According to a local news report, Washington County Chancellor John Rambo ruled in March 2022 that Red Dog’s Limestone site near an energy substation did not meet Washington County’s zoning definition of a public utility.

An initial settlement framework that called for Red Dog to cease its operations by December 31, 2024, and relocate its Limestone site to the Washington County Industrial Park was rejected by the County Commission in November 2022.