An elementary school in Michigan has filed a lawsuit against Odessa Partners, the owner of a cryptocurrency mining operation near Sault Ste. Marie, over the constant noise generated by the facility. The noise from the mining operation on Mackinac Trail, seven miles south of Sault Ste. Marie, is described as a high-pitched, metallic whine, similar to a chorus of mechanical insects. According to Lake Superior Academy’s Superintendent Susie Schlehuber, the noise initially registered at 75 decibels at the edge of the school’s property, roughly the volume of a running vacuum cleaner. At the school’s front door, it measured 65 decibels, about the same as a washing machine. This high-pitched noise began in March 2025 and, despite some mitigation efforts such as placing hay bales around the site, it has persisted continuously except for a court-ordered two-week pause. “It’s 24 hours a day, seven days a week. It never stops,” Schlehuber said. Lake Superior Academy, which has an environmental focus and approximately 100 students from pre-kindergarten to fifth grade, spends a significant amount of time outdoors. The constant noise has forced the school to stop conducting lessons on the front lawn, close windows, and shelve plans to build two new classrooms. The cryptocurrency mining operation consists of six self-contained banks of machines owned by Odessa Partners LLC, a Boca Raton, Florida-based company. Court filings reveal Odessa Partners is linked to two other entities registered in Wyoming and Delaware, both connected to Michael Carbonara, a Florida man who is CEO of Ibanera, a fintech platform. Carbonara also applied for the building permit for the mining operation. Attempts to contact Carbonara and Odessa Partners’ attorneys were unsuccessful. After a temporary shutdown ordered by Chippewa County Circuit Court Judge James Lambros, Odessa Partners claimed it was losing over $15,000 daily and had already taken noise mitigation steps. The company also argued that the noise from their property was less than that generated by activity on the other side of the school’s property along Interstate 75. However, Schlehuber emphasized the difference between occasional loud trucks and the constant noise from the mining operation. The school had tried to work with Odessa Partners since March but saw no progress toward a sustainable solution, prompting the lawsuit.

Cryptocurrency Mining in Northern Michigan

Cryptocurrency mining requires massive computing power to solve complex cryptographic puzzles that verify transactions on a public ledger. Miners guess millions of numbers per second to find a valid digital fingerprint for transaction blocks. Successful miners earn newly created cryptocurrency and transaction fees. Mining consumes enormous amounts of energy. For example, mining a single bitcoin uses as much energy as an average U.S. household consumes in 39 days. Northern Michigan, including Sault Ste. Marie, is attractive for mining operations due to its cold climate, which helps with cooling the machines—a major energy cost—and because local utilities like Cloverland Electric Cooperative are willing to work with high-volume power users. Kevin Shaw, CEO of OOM Technologies, which hosts cryptocurrency mining computers nearby, explained that steady, high-volume energy use helps stabilize the grid and benefits the utility. Schlehuber said the school first learned of the Odessa Partners project last fall when Cloverland sought an easement through their property but provided limited information. The school board denied the easement due to lack of clarity about the project. Cloverland’s public statements say the utility does not control land-use decisions but acknowledges that data centers contribute steady energy use that supports rate stability. Dafter Township is considering more specific rules for data centers following community concerns. Schlehuber expressed confusion and frustration over the mining operation’s location directly across from an elementary school, stating, “It’s like they were looking for a fight.”

Source: GovTech

Frequently Asked Questions (FAQ)

The Lawsuit and Noise Concerns

Q: Why has Lake Superior Academy filed a lawsuit against Odessa Partners? A: The school has filed a lawsuit due to the constant, high-pitched noise generated by the cryptocurrency mining operation, which they claim is disruptive to the educational environment. Q: How loud is the noise from the mining operation? A: The noise registers at approximately 75 decibels at the edge of the school's property and 65 decibels at the front door, comparable to a running vacuum cleaner or a washing machine. Q: When did the noise issue begin? A: The high-pitched noise started in March 2025 and has been persistent, except for a brief court-ordered pause. Q: What impact has the noise had on the school? A: The school has had to stop outdoor lessons, close windows, and halt plans for new classrooms due to the continuous noise. Q: What steps has Odessa Partners taken to mitigate the noise? A: The company has reportedly taken some mitigation steps, such as placing hay bales around the site, but the noise has persisted.

Cryptocurrency Mining Operations

Q: What is cryptocurrency mining? A: Cryptocurrency mining is the process of using powerful computers to solve complex cryptographic puzzles to verify transactions on a public ledger, earning newly created cryptocurrency and transaction fees in return. Q: Why is Northern Michigan attractive for cryptocurrency mining? A: Its cold climate is beneficial for cooling the mining equipment, and local utilities are often willing to work with high-volume power users. Q: How much energy does cryptocurrency mining consume? A: Mining a single bitcoin can consume as much energy as an average U.S. household uses in 39 days.

Odessa Partners and Michael Carbonara

Q: Who owns the cryptocurrency mining operation? A: The operation is owned by Odessa Partners LLC, a Florida-based company linked to Michael Carbonara, CEO of the fintech platform Ibanera. Q: What were Odessa Partners' claims regarding the shutdown? A: Odessa Partners claimed to be losing over $15,000 daily and stated they had already implemented noise mitigation measures. They also argued their noise levels were less than other activities near the school.

Crypto Market's Take

This situation highlights a growing tension between industrial energy consumption, particularly from cryptocurrency mining, and community well-being. As more data centers and mining operations establish themselves in areas with favorable climates and energy costs, concerns about their local environmental impact, including noise pollution, are becoming more prominent. This case underscores the need for careful zoning and regulatory oversight for such facilities, especially when located near residential areas or educational institutions. For platforms like ours that focus on AI-driven market analysis and trading, understanding these macro-level impacts on the cryptocurrency industry's infrastructure and public perception is crucial. It also emphasizes the importance of responsible development and community engagement within the blockchain space.

Michigan Charter School Sues Crypto Mining Over Constant Noise