NYDIG is gearing up to acquire Crusoe’s bitcoin mining venture, which includes the innovative Digital Flare Mitigation (DFM) business. Of course, this deal hinges on regulatory green lights and the usual approvals before finalizing. Once everything settles, around 135 employees from Crusoe will transition over to NYDIG, working under its new ownership umbrella without any expected job cuts. As for the financial details, those remain under wraps.
Tejas Shah, the CEO of NYDIG, expressed enthusiasm about the acquisition. “Our collaboration with Crusoe was born from a strong cultural connection and a collective drive to push boundaries where energy meets computing,” Shah said. “Crusoe has carved out a stellar reputation in bitcoin mining, thanks to their innovative spirit, gathering some of the industry’s brightest minds to tackle tough problems and tap into underutilized energy. We can’t wait to welcome this exceptional team and their expertise into our ever-expanding business.”
Founded in 2018, Crusoe has pioneered the use of DFM technology to transform natural gas from oil fields, which would otherwise be wasted by flaring, into electricity for mobile data centers. Initially, these centers focused on bitcoin mining, but the company has since ventured into the realm of artificial intelligence (AI), harnessing GPU clusters for these workloads. By colocating their computing efforts with energy production sites, Crusoe has managed to not only lessen their environmental footprint but also make good use of stranded energy sources.
Crusoe’s bitcoin mining footprint includes over 425 modular data centers, drawing more than 250 megawatts of power across various states like Colorado, North Dakota, Montana, and Wyoming, even extending internationally to places like Argentina. The company’s DFM technology has played a significant role in curbing 2.7 million metric tons of greenhouse gas emissions and avoiding the flaring of about 22 billion cubic feet of natural gas.
Chase Lochmiller, co-founder and CEO of Crusoe, explained the company’s vital role. “The proof-of-work system in the bitcoin blockchain encourages a blend of energy and computing,” Lochmiller noted. “At Crusoe, we’ve been at the forefront of using wasted energy, such as gas flares, to fuel the bitcoin network. Our approach to energy for mining aligns perfectly with NYDIG’s focus on bitcoin custody, institutional trading, and mining, making our united front more powerful than the individual parts. We plan to maintain this energy-driven focus as we scale AI infrastructure and promote AI’s integration into daily life.”
Post-acquisition, Crusoe plans to concentrate on scaling its AI infrastructure, enhancing its AI-centric data centers, and expanding its Crusoe Cloud offerings, all while further developing energy solutions tailored to its computing needs.
