Bitcoin News Today: Union Jack Oil to Mine Bitcoin Using Stranded Gas at West Newton Site

Union Jack Oil, a UK-listed oil and gas company, has announced plans to enter the Bitcoin mining sector by leveraging stranded natural gas at its West Newton site in East Yorkshire [1]. The firm has signed a non-binding letter of intent with Texas-based 360 Energy and joint venture partner Reabold Resources to install gas-powered electricity infrastructure and on-site Bitcoin mining units [1]. The initiative is expected to utilize gas from the West Newton A and B wells to power data centers running 360 Energy’s “In-Field Computing” system, which is designed to convert raw gas directly into electricity for mining operations [1].

The move represents a strategic pivot for Union Jack Oil, which aims to create a new revenue stream through Bitcoin mining while also reducing environmental waste by repurposing otherwise unused gas. According to an independent assessment by RPS in 2022, the West Newton site contains an estimated 2C gross recoverable gas resources of nearly 200 billion cubic feet [1]. By using this stranded gas to power mining operations, the company is seeking to unlock value from underutilized assets without waiting for full field development [1].

The timing of the project aligns with a period of rising Bitcoin network difficulty. According to Cloverpool data, Bitcoin mining difficulty is expected to reach an all-time high of over 130 trillion on August 9 [1]. Despite this, the year-to-date growth in mining difficulty has been relatively modest at 16%, with Blockware noting that the pace of difficulty increases may slow further in 2025 [1]. The firm attributes this trend to maturing hardware capabilities, infrastructure constraints, and the growing interest of data center operators in alternative sectors such as artificial intelligence [1]. Blockware also suggests that this slower growth in difficulty could ultimately benefit miners by reducing competition for the daily 450 BTC reward [1].

Union Jack Oil’s Bitcoin mining strategy, outlined by its Executive Chairman David Bramhill, aims to develop a new Bitcoin Treasury model for the company [1]. The approach reflects a broader trend among traditional energy firms to explore blockchain-related opportunities as part of their diversification efforts. By integrating stranded gas into the Bitcoin mining process, the company is positioning itself to address both economic and environmental challenges. The initiative also highlights the increasing synergy between traditional energy infrastructure and the digital economy, particularly as Bitcoin mining becomes more resource-intensive [1].

If successful, the model could be replicated at other nearby discoveries, potentially creating a scalable and sustainable approach to Bitcoin mining powered by low-cost, on-site energy sources [1]. The project’s success will depend on several factors, including the efficiency of the gas-to-power conversion, the stability of the Bitcoin network, and broader market conditions for both energy and digital assets [1]. The venture underscores the evolving landscape of energy diversification and highlights how traditional industries are adapting to the demands of the digital age [1].

Source:

[1] Union Jack Oil JV to Mine Bitcoin Using On-Site Gas at West Newton (https://coinpedia.org/crypto-live-news/union-jack-oil-jv-to-mine-bitcoin-using-on-site-gas-at-west-newton/)