TLDR
- Crusoe Energy is selling its Bitcoin mining business to NYDIG to focus on AI infrastructure
- The deal includes 425 modular data centers across 7 US states and Argentina, totaling 270 megawatts
- About 135 Crusoe employees will join NYDIG with no job eliminations
- Crusoe pioneered technology that converts waste gas from oil fields into electricity for computing
- AI has become the majority of Crusoe’s revenue as the company sees greater growth opportunities in this sector
Crusoe Energy announced on March 25 that it plans to sell its Bitcoin mining operation to New York Digital Investment Group (NYDIG). The deal includes Crusoe’s Digital Flare Mitigation business which has been operating since 2018.
The transaction will transfer 425 modular data centers spread across seven US states and Argentina to NYDIG. These facilities represent approximately 270 megawatts of power generation technology.
Around 135 Crusoe employees will join NYDIG as part of the agreement. No roles will be cut as a result of the transaction, with staff continuing to operate the business under NYDIG’s ownership.
Crusoe Energy was founded in 2018 with a mission to solve an environmental problem. The company pioneered a technology called Digital Flare Mitigation (DFM).
This innovative solution captures natural gas from oil fields that would otherwise be burned off into the air. It then converts this “stranded energy” into electricity to power data centers placed directly at oil field sites.
The company initially used this energy to mine Bitcoin. Reports suggest Crusoe’s operation accounts for about 1% of the world’s Bitcoin mining activity.
Over time, Crusoe expanded its business model. The company began using its energy to power AI workloads on graphics processing unit (GPU) clusters.
From Bitcoin to AI
“The AI business — it’s become the majority of our revenue,”
said Cully Cavness, co-founder and chief operating officer of Crusoe. The company now sees AI infrastructure as its primary growth opportunity.
Crusoe is currently developing what could become one of the most powerful GPU clusters in the world. The company is building a hyperscale data center campus in Abilene, Texas.
This facility will start with 206 megawatts of capacity. It is expected to grow to 1.2 gigawatts by mid-2026, which could set a speed record for new data center development.
Crusoe is also expanding its cloud platform. The company is offering on-demand access to high-performance GPUs and is already running AI workloads in Iceland using only geothermal and hydropower.
Environmental Impact
Since launching seven years ago, Crusoe’s Digital Flare Mitigation business has made a positive environmental impact. The company reports it has prevented 2.7 million metric tons of greenhouse gas emissions.
Crusoe has stopped nearly 22 billion cubic feet of natural gas from being flared. This is equivalent to taking about 630,000 cars off the road for a year.
The company’s approach to energy and computing has influenced the broader industry. Crusoe proved that data centers could be effectively located in remote areas near energy sources.
“Crusoe’s innovative approach to energy utilized for mining is uniquely complementary to NYDIG’s bitcoin custody, institutional trading and mining businesses,” said Chase Lochmiller, CEO and co-founder of Crusoe.
For NYDIG, the acquisition helps expand its role in supporting Bitcoin’s proof-of-work security. The company is a leading bitcoin and power firm valued at approximately $7 billion.
“It is critically important to keep the Bitcoin network secure, and at the lowest possible cost,”
said Ross Stevens, NYDIG founder and executive chairman. He claimed that “fiat currencies are collapsing against Bitcoin around the world.”
NYDIG and Crusoe have worked together for years on flare gas projects. They have experience hosting each other’s equipment, which helped build trust between the companies.
Tejas Shah, CEO of NYDIG, expressed excitement about the deal. “Crusoe has built an extraordinary bitcoin mining business by demonstrating remarkable innovation—bringing together the industry’s top talent to solve complex challenges and unlock untapped energy sources.”
After the transaction closes, Crusoe will become a major equity holder in the combined entity. The company will rank second only to Stone Ridge, NYDIG’s parent company, in ownership stake.
The shift mirrors a trend in the tech industry. CoreWeave, another company that started in crypto before pivoting to AI, is scheduled to hold its stock market debut soon with a potential valuation over $25 billion.
Terms of the Crusoe-NYDIG deal were not disclosed. The transaction remains subject to regulatory approvals and customary consents before final closing.
