El Reno Bitcoin Mine Condemned After Draining City's Water Supply

A devastating water crisis in El Reno, Oklahoma has led to the condemnation of a Bitcoin mining site owned by Athlon Blockchain Technology LLC. The facility, which had been operating without proper permits for years, was responsible for draining over 3 million gallons from the city's water supply last month, causing pressure drops that forced schools to cancel classes and closed the county courthouse.

The crisis has exposed a three-year trail of regulatory failures by the City of El Reno, which issued a formal stop-work order against Athlon in June 2023 over unpermitted electrical work and fire safety violations. However, the company ignored the deadline and continued operating without ever obtaining a required Certificate of Occupancy.

El Reno Interim City Manager Ken Brown has acknowledged that municipal officials failed to conduct follow-up enforcement or shut down operations after denying Athlon's building permits in 2023. This allowed the unapproved mine to keep running for years while residents and city staff remained largely unaware.

The crisis has also highlighted a broader statewide shift limiting what cities can do about facilities like Athlon's, due to the Blockchain Basics Act signed into law by Gov. Kevin Stitt in November 2024. The law ties cities' hands in regulating crypto mining operations.