Crusoe Energy, a firm that harnesses waste gas from oil production to fuel high-performance computing, is divesting its Bitcoin mining operations to New York Digital Investment Group (NYDIG) as it shifts its focus toward artificial intelligence.
In a statement released on March 25, Crusoe announced its intention to sell its Bitcoin BTCUSD mining operations, which include its digital flare mitigation services, to NYDIG, contingent upon regulatory approvals and other consents.
The transaction will involve Crusoe’s power generation technology, which has a capacity of 270 megawatts, along with over 425 modular data centers located in the United States and Argentina. Additionally, 135 employees from Crusoe will be transitioned to NYDIG, ensuring that no jobs will be lost due to the sale.
Founded in 2018, Crusoe has been at the forefront of technology that captures waste gas produced during oil extraction and refinement—a process typically associated with gas flaring—to power Bitcoin mining operations.
This technology transforms gas, or “stranded energy,” into electricity to support the high-performance computing needed for Bitcoin mining and AI data centers. Some estimates indicate that Crusoe’s Bitcoin mining activities contribute to 1% of the global Bitcoin mining output.
Crusoe’s AI Growth Ambitions
Nevertheless, Crusoe now aims to concentrate its technological efforts on developing AI infrastructure.
“The AI segment has grown to represent the majority of our revenue,” Cully Cavness, the co-founder, president, and COO of Crusoe, shared with CNBC.
The company has recently increased its AI data center capacity in Abilene, Texas, to 1.2 gigawatts and simultaneously announced a partnership with investment firm Engine No. 1 to create large-scale data center campuses throughout the U.S. for enhanced AI functionalities.
In December of last year, Crusoe secured $600 million during a Series D funding round, valuing the company at $2.8 billion to further advance its AI initiatives.
“We recognize a significant opportunity ahead of us, and we possess a considerable advantage and head start with our existing announcements—plus more developments are on the horizon,” Cavness added.
NYDIG indicated that acquiring Crusoe’s Bitcoin mining operations will enhance its ability to support the security of Bitcoin’s proof-of-work mechanism.
NYDIG’s founder and executive chairman, Ross Stevens, emphasized, “Maintaining the security of the Bitcoin network at the lowest possible cost is critically important,” asserting that fiat currencies are “diminishing in comparison to Bitcoin around the globe.”
