Hood County — MARA Holdings, a cryptocurrency mining operation in rural Hood County, has filed a federal lawsuit challenging the legality of a citizen-led ballot initiative to incorporate the Mitchell Bend area.
The suit, filed Monday in the Northern District of Texas in Fort Worth, names Hood County Judge Ron Massingill, County Attorney Matt Mills, and Election Administrator Stephanie Cooper as defendants. MARA alleges the three county officials were aware the petition was legally deficient but allowed it to proceed to the Nov. 4 ballot.
MARA says emails obtained through Open Records requests show Mills, Cooper and county commissioner Nannette Samuelson repeatedly acknowledged defects in the incorporation petition. The company contends Cooper failed to verify signatures before Massingill signed the order placing the measure on the ballot and that neither Cooper nor Mills confirmed the petition’s accuracy. MARA also alleges county officials rushed the approval process and urged the judge to sign quickly due to time constraints.
The incorporation initiative emerged after longtime noise complaints from residents living near the Bitcoin mining facility. The operation uses large cooling fans that residents say produce continuous noise that penetrates homes and has caused health problems including sleep disturbances, high blood pressure and dizziness. Supporters of incorporation argue that forming a municipality would give them regulatory authority over noise and pollution from the mining operation and nearby power plants.
Proponents say the proposed city would fund operations through impact fees charged to industry rather than property taxes. Cheryl Shadden, a leader of the incorporation effort, previously filed a complaint with the Secretary of State’s Office when the county judge initially removed the item from the ballot. The Secretary of State responded on Oct. 6, saying disputes over the legality of an incorporation must be resolved in district court once an election has been ordered.
MARA also alleges county officials restricted public participation by removing the incorporation topic from public meeting agendas and limiting public comment to those supportive of the initiative. The company argues that conduct created an unfair process that could result in excessive taxes and regulation directed at its operation.
County Attorney Matt Mills said MARA contacted him Monday morning to notify him of the lawsuit. “The courts are open for business. They filed the lawsuit. We’ll see what the courts do,” Mills said. He also said the county judge had approved the petition in May, later invalidated it, and then notified residents to submit new petitions by the August deadline so the incorporation vote could appear on the Nov. 4 ballot.
The federal court will decide whether the petition met the legal requirements for placement on the ballot.