The United States has instructed a crypto mining company with Chinese ties to divest its property close to a nuclear missile facility.

The Biden administration has instructed a Chinese-supported cryptocurrency mining corporation to divest land adjacent to a U.S. nuclear missile base, following a probe by a governmental agency. This action coincides with several stringent China-focused strategies from the White House, all aimed at safeguarding U.S. national security.

On Monday, President Joe Biden issued a directive compelling a cryptocurrency mining firm supported by China to divest its land near a nuclear missile base in Wyoming due to national security worries. MineOne, the company in question, purchased the property in June 2022, locating its activities within a mile of the Francis E. Warren Air Force Base, described by the White House as a "strategic missile base and critical component of America's nuclear defense system."

According to the presidential order, the company's premises housed "specialized and foreign-provided equipment with the potential to aid in surveillance and espionage activities." Biden remarked that there was "credible evidence" indicating that the company, a British Virgin Islands entity primarily owned by Chinese individuals, "may engage in actions that pose a threat to the national security of the United States."

The Biden administration has mandated MineOne to relinquish its ownership of the land within the next 120 days and to dismantle specific enhancements and equipment at the site. CNBC's request for comment from the company remained unanswered at the time of reporting.

This action from the Biden administration occurs amidst a broader campaign targeting Chinese firms in the U.S. ahead of the forthcoming presidential elections, amid escalating tensions between the world's top two economies.

In April, Biden enacted legislation mandating the separation of the social media platform TikTok from its Chinese parent company ByteDance due to national security concerns. Simultaneously, the administration is anticipated to announce fresh tariffs on various Chinese imports, including electric vehicles, medical supplies, and other equipment, as early as Tuesday.

The recent directive targeting MineOne stemmed from an inquiry conducted by the U.S. Committee on Foreign Investment in the United States (CFIUS), a governmental body overseen by the U.S. Treasury Department tasked with scrutinizing corporate transactions for potential national security implications.

A law enacted in 2018 empowered CFIUS to review property transactions near sensitive U.S. installations, such as the Francis E. Warren Air Force Base.

In September, Biden issued an executive order directing the committee to incorporate additional national security risk factors into their evaluations. The agency has initiated an inquiry into TikTok as well.

According to the White House directive, MineOne's property acquisition was not disclosed to CFIUS until after the agency commenced an investigation prompted by a public tip.

U.S. Treasury Secretary Janet Yellen stated that the action against MineOne "underscores the vital role CFIUS plays in ensuring that foreign investments do not compromise our national security."

China has also intensified its scrutiny of U.S. firms in recent years, citing national security concerns. The country expanded its legislation concerning the sharing of state secrets to encompass a broad category of "work secrets."

Additionally, China imposed restrictions on certain U.S. technology companies like Micron from supplying critical infrastructure in the country following a security evaluation and cracked down on several foreign consultancy firms last year.

Source: CNBC