NYDIG has revealed plans to take ownership of Crusoe’s Bitcoin mining activities, which includes their pioneering Digital Flare Mitigation (DFM) technology division. This transaction is contingent upon standard regulatory approvals, customary agreements, and the finalization of the deal. Upon successful completion, approximately 135 employees from Crusoe are set to transition to NYDIG, continuing to manage the business under new ownership. The acquisition is not expected to result in any job losses. The specific financial details of this agreement have remained confidential.
“Our established partnership with Crusoe has been built on a foundation of shared values and a joint commitment to advancing innovation where energy and computing meet,” explained Tejas Shah, CEO of NYDIG. “Crusoe has developed an impressive Bitcoin mining enterprise through exceptional innovation—assembling a talented team to overcome complex obstacles and unlock untapped energy resources. We are eager to welcome this exceptional team and their expertise into our expanding operations.”
Crusoe, established in 2018, pioneered DFM technology to harness natural gas from oil fields—gas that would typically be burned off—and convert it into electricity to power modular data centers. Initially, these data centers were employed for Bitcoin mining but later expanded to include artificial intelligence (AI) workloads utilizing GPU clusters. Crusoe’s strategy of co-locating computing power with energy generation has played a significant role in minimizing environmental consequences while leveraging otherwise wasted energy sources.
Crusoe’s Bitcoin mining activities have deployed over 425 modular data centers, representing more than 250 megawatts of power capacity spread across various states including Colorado, North Dakota, Montana, Wyoming, New Mexico, Utah, Texas, as well as internationally in Argentina. According to company figures, their DFM technology has successfully reduced greenhouse gas emissions by 2.7 million metric tons and prevented the flaring of nearly 22 billion cubic feet of natural gas.
“The proof-of-work mechanism inherent in the Bitcoin blockchain inherently drives the convergence of energy and computing resources,” stated Chase Lochmiller, co-founder and CEO of Crusoe. “Crusoe takes pride in being a leader in repurposing wasted energy sources like gas flaring to power the Bitcoin network. Our unique approach to energy utilization for mining perfectly complements NYDIG’s Bitcoin custody, institutional trading, and mining services, forming a consolidated entity that generates greater value than the individual components. We will continue to leverage the same energy-first approach as we scale AI infrastructure and accelerate the integration of AI in our daily routines.”
Following the finalization of this deal, Crusoe plans to re-focus its efforts on scaling AI infrastructure, constructing data centers optimized for AI applications, and expanding its Crusoe Cloud service offerings, all while continuously developing energy solutions for its computing operations.