In the rural town of Oak Valley, Texas, a tiny hamlet with a population of around 400 people, a peculiar proposal is being considered. The town, struggling to fund basic infrastructure, is set to annex an industrial-scale bitcoin mine, a move that could potentially increase its annual budget by as much as fortyfold.
The bitcoin mine, constructed by public crypto mining firm Riot Platforms on a 265-acre parcel of land, is expected to become the world’s largest, consuming up to 1 gigawatt of energy. Once complete, the facility will be annexed by Oak Valley, a decision that will bring in much-needed revenue for the town’s infrastructure.
According to a series of email communications, Riot is negotiating with Oak Valley to annex the land, a move that will allow the company to pay no costs, as the energy company serving the area will cover the bill. The annexation plan, still in the works, will make possible improvements to Oak Valley’s roads and other public infrastructure.
Riot’s motives are twofold. The company hopes to curry favor with local residents and county officials, who will soon decide on its property tax abatement application. Millions of dollars are at stake, and Riot’s ability to gain local support is crucial.
When asked about the prospect of an annexation, Riot declined to comment. However, Brian Morgenstern, head of public policy, expressed optimism, stating that the annexation should benefit all parties involved. Oak Valley’s mayor, Max Taylor, has been leading the push for the annexation, although he declined to be interviewed for this story.
The annexation would allow Oak Valley to collect significant franchise fees from the energy company, increasing its revenue from approximately $9,000 to potentially half-a-million dollars annually once the facility is complete. According to David Brewer, a commissioner in the Navarro County Commissioner’s Court, the move would provide a much-needed boost to the town’s finances.
