Crusoe to sell Bitcoin mining business to NYDIG to focus on AI
NYDIG Acquires Crusoe’s Bitcoin Mining Operations as the Focus Shifts to AI Expansion
In a major move, New York Digital Investment Group (NYDIG) has reached an agreement to acquire Crusoe Energy’s Bitcoin mining operations, which include 425 modular data centers across seven U.S. states and Argentina. The acquisition, announced on March 25, will allow Crusoe to shift its focus toward artificial intelligence (AI), while continuing to support Bitcoin’s proof-of-work security.
Crusoe Energy, known for its innovative approach of capturing waste gas from oil extraction and refining processes (called “gas flaring”) to power Bitcoin miners, will sell its mining business, including its digital flare mitigation technology. This technology converts stranded gas into electricity to power the high-performance computing required for Bitcoin mining and AI data centers. The deal also includes Crusoe’s 270 megawatts of power generation capacity and 135 employees who will join NYDIG as part of the transaction, with no job losses expected.
Founded in 2018, Crusoe has grown rapidly, with reports suggesting that its Bitcoin mining operation contributes to about 1% of global Bitcoin mining. However, the company now plans to focus on expanding its AI infrastructure, which has become the primary revenue driver. Crusoe’s AI-focused expansion includes a newly expanded AI data center in Abilene, Texas, and a joint venture with Engine No. 1 to develop large-scale data centers across the U.S. In December, the company closed a $600 million Series D funding round at a $2.8 billion valuation, further fueling its growth in AI.
Shifting Focus: From Bitcoin Mining to AI Infrastructure
The acquisition by NYDIG will allow Crusoe to concentrate fully on its AI business, which has become the majority of its revenue stream. Crusoe’s co-founder, Cully Cavness, emphasized the need for dedicated investment and focus for each business segment to reach its full potential. As Crusoe ramps up its AI infrastructure, it recognizes the immense opportunity ahead.
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