Berns, who made a fortune selling cryptocurrency last year, plans to transform the 67,000-acre (27,113-hectare) plot in the north of the US state after paying reportedly paying $170 million (£130 million) for the land.
He intends to use the money to develop the remainder of his land into a smart city, billed as "a new kind of business and residential community".
The proposed blockchain city is intended to pioneer uses for the technology in an urban environment, including houses, schools and a high-tech park for Berns' company.
The site known as Innovation Park, which neighbours hubs of major tech giants including Google, Apple, Switch and Tesla, is already home to the headquarters of his company Blockchains – an incubator that supports ventures and businesses using blockchain technology.
"Our land in Innovation Park will be a smart city with a decentralised blockchain infrastructure underlying all interaction," said a statement on Blockchains' website.
A potential major advantage of this city model is greater control of privacy of personal information – an advantage of blockchain highlighted by Dezeen Opinion columnist Paul Colleti.
For example, occupants of Innovation Park could be able to bank, vote and store data in the blockchain, without including middlemen companies or the government, reports the New York Times.
Berns – now waiting for final approval for Innovation Park – is willing to accept the challenges and intends to begin construction next year.
"This will either be the biggest thing ever, or the most spectacular crash and burn in the history of mankind," he told the New York Times. "I don't know which one."
Renderings are by Ehrlich Yanai Rhee Chaney Architects and Tom Wiscombe Architecture.