A major Bitcoin mining company is suing a Texas county to halt the creation of a new municipality, alleging unconstitutional conduct and a “hostile takeover” attempt sparked by local environmental concerns.
MARA Holdings, formerly Marathon Digital and one of the world’s largest public Bitcoin miners, has filed an emergency lawsuit in Upton County, Texas. The company seeks to block a November 5 vote that would incorporate “McCamey Township,” a new town designed to completely surround its 300-megawatt (MW) Bitcoin mining facility.
The lawsuit argues the proposed municipality violates the Texas Local Government Code, contending the area lacks the necessary 200 residents or minimum density required for incorporation. It also alleges a de facto expropriation of private property, claiming the town’s boundaries strategically exclude MARA employees living on the site from voting.
Fred Thiel, CEO of MARA, described the initiative as “regulatory extortion disguised as local democracy,” according to a statement cited by FOX 4 News. The company’s 28-page legal filing accuses Hood County officials of conspiring against MARA.
If created, the new township would transfer direct regulatory power over issues such as noise, dust, water consumption, and heavy traffic from the county level to local residents. This move comes after two years of complaints from residents in McCamey and Rankin.
Locals have documented noise levels from the mining operation’s cooling fans exceeding 85 dB at 500 meters from the perimeter fence, which they equate to the sound of a regional airport. An independent report from Texas Tech University, cited in the incorporation petition, noted the facility uses 1.2 million gallons of water daily for cooling and draws peak electricity loads of 150 MW from the ERCOT grid.
MARA states it has installed soundproofing barriers and replaced many noisy fans with quieter equipment in response to the complaints. However, residents contend the noise remains a significant issue.
Residents, organized under “Citizens Concerned About Wolf Hollow” and represented by the environmental law firm Earthjustice, previously sued MARA for private nuisance in 2024 but lost a related noise case in county court.
MARA’s current lawsuit specifically names Hood County Judge Ron Massingill, County Attorney Matt Mills, and Election Administrator Stephanie Cooper, accusing them of “intentional and unconstitutional” conduct for approving the election initiative.
County Attorney Matt Mills stated in an October 3 email, cited in the lawsuit, that “The county is not going to invalidate the petition at this time. The courts are open to file an injunction request.”
MARA estimates that a forced closure of its facility would result in the loss of more than 50 direct jobs and millions of dollars in local tax revenue. The case is registered as No. 4:25-cv-1202 in the Northern District of Texas, Fort Worth Division.