Crusoe Energy Sells Bitcoin Mining Operations to NYDIG for AI Focus

Crusoe Energy has announced its decision to sell its Bitcoin mining operations to New York Digital Investment Group (NYDIG), marking a significant shift in the company's strategic focus. This transaction will enable Crusoe to concentrate its efforts on developing artificial intelligence (AI) infrastructure, a sector that has become the majority of its revenue. The deal includes the transfer of 425 modular data centers located across seven US states and Argentina, which currently account for approximately 1% of the global Bitcoin mining capacity. Additionally, about 135 Crusoe employees will join NYDIG as part of the transaction, ensuring that no jobs will be eliminated as a result of the deal.

Crusoe Energy, founded in 2018, has been at the forefront of innovative technology that captures waste gas from oil fields and converts it into electricity, powering Bitcoin mining operations. This approach has prevented approximately 2.7 million metric tons of greenhouse gas emissions since its inception. The company's technology has saved nearly 22 billion cubic feet of natural gas from being flared, equivalent to taking about 630,000 cars off the road for a year. Crusoe will retain a major equity position in the combined business, becoming the second-largest equity holder after Stone Ridge, NYDIG’s parent company.

The shift towards AI infrastructure reflects changing market opportunities and the growing demand for high-performance computing resources. Crusoe has been developing its AI infrastructure from the beginning and is now focusing on large-scale AI data center development. In Abilene, Texas, Crusoe is building a hyperscale data center campus with 206 megawatts of initial capacity, expected to scale to 1.2 gigawatts by mid-2026. This project could set speed records for greenfield data center development. Additionally, Crusoe is expanding its cloud platform to offer on-demand access to high-performance GPUs, already running AI workloads in Iceland powered entirely by geothermal and hydropower.

Crusoe closed a $600 million Series D funding round in December at a $2.8 billion valuation, providing the necessary capital to support its AI infrastructure expansion plans. NYDIG, valued at approximately $7 billion, plans to continue operating and investing in the Bitcoin mining business it’s acquiring, seeing strategic value in supporting Bitcoin’s proof-of-work security. The transaction requires regulatory approvals and other customary consents before closing, with both companies expecting the deal to strengthen their respective market positions.

This strategic shift in the crypto and computing industry highlights the evolving landscape as companies pivot from cryptocurrency mining to AI infrastructure. Crusoe's innovative approach to energy utilization for mining is uniquely complementary to NYDIG’s Bitcoin custody, institutional trading, and mining businesses. The acquisition represents a significant milestone for both companies, positioning them for future growth and innovation in their respective sectors.