Crusoe Energy is selling its Bitcoin mining business to New York Digital Investment Group (NYDIG). The sale will allow Crusoe to focus on artificial intelligence.
The transaction includes Crusoe’s Digital Flare Mitigation business and is pending regulatory approval. About 135 Crusoe employees will join NYDIG upon closing, and there will be no job reductions. Financial terms were not available. NYDIG will further invest in the mining business and its expansion.
Crusoe, founded in 2018, developed Digital Flare Mitigation (DFM) technology. Its technology utilizes waste gas in oil fields to produce electricity. Instead of flaring excess gas, Crusoe’s process powers data centers directly at the location of the excess gas production.
Crusoe’s energy innovation powers Bitcoin and AI
This approach not only reduced emissions but also demonstrated a new model for computing energy consumption. The success of this approach set an example for the AI industry, demonstrating that it is both possible and efficient to co-locate computing capacity with energy production.
Crusoe used its mobile data centers to mine Bitcoin initially. It then moved into AI computing with GPU clusters. Its mining business scaled aggressively, with more than 425 modular data centers in seven states and two countries.
These actions cut 2.7 million metric tons of greenhouse gas emissions. The system also prevented nearly 22 billion cubic feet of natural gas from being wasted. The environmental impact is the same as removing 630,000 cars from the road for a year.
The Bitcoin network’s proof-of-work system links energy use with computing power. Crusoe played a key role in repurposing wasted energy to support Bitcoin’s infrastructure. The sale to NYDIG merges Crusoe’s innovative energy solutions with NYDIG’s expertise in Bitcoin custody, trading, and mining.
Crusoe shifts from Bitcoin to AI
The new company will be valued at more than the parts individually. NYDIG knows Crusoe’s position in Bitcoin mining and energy efficiency. NYDIG will add Crusoe’s staff and technology to enhance its company.
Crusoe will now prioritize AI-focused infrastructure. This includes expanding its AI-optimized data centers and building out its Crusoe Cloud offerings. The firm remains committed to sustainable energy solutions while creating AI technology.
Crusoe aims to make the future of computing environmentally sustainable. It offers scalable and low-cost AI infrastructure via the utilization of clean energy. NYDIG, meanwhile, keeps constructing its stake in Bitcoin and power infrastructure.
It aims to energize institutional investment with the optimization of low-energy consumption at low cost. The pivot is a shift in focus for Crusoe, as it moves away from Bitcoin mining to the building of AI with its energy-first priority.
