TLDR
- Crusoe is offloading its Bitcoin mining to align its focus on the advancement of AI infrastructure.
- The transaction includes an expansive network of 425 modular data centers sprawled across seven states in the US and Argentina, bringing 135 Crusoe staff into the NYDIG fold.
- Crusoe was at the forefront of technology that ingeniously captures surplus gas from oil fields, repurposing it to power Bitcoin mining, thus abating around 2.7 million metric tons of greenhouse gases.
- Revenues from Crusoe's AI arm have now outstripped those from other parts of its business.
- Crusoe is scaling up its AI facilities with a sprawling data center campus in Abilene, Texas, poised to hit a capacity of 1.2 gigawatts by mid-2026.
Crusoe Energy On March 25, an announcement surfaced about Crusoe opting to sell off its Bitcoin mining operations to NYDIG, thereby enabling the company to zero in on constructing robust AI infrastructure.
The deal encapsulates Crusoe's innovative Digital Flare Mitigation venture, operational since 2018, which not only captures waste gas but also transforms it into electricity.
NYDIG is set to take over 425 modular data centers distributed through seven US states and Argentina—these sites constitute about 1% of the global Bitcoin mining capacity.
As the deal progresses, around 135 employees from Crusoe will transfer to NYDIG, with assurances that no roles will be axed.
Crusoe aims to maintain a significant equity position in the newly formed entity, ranking only second to Stone Ridge, NYDIG's parent firm.
Initiated in 2018, Crusoe was deliberate in tackling environmental dilemmas in the energy sector, leading the way in technology that recycles gas flaring for electrical power generation.
The energy salvaged through Crusoe's technology has fueled Bitcoin mining installations for numerous years, circumventing the emission of about 2.7 million metric tons of greenhouse gases since its inception.
By harnessing Crusoe's tech, nearly 22 billion cubic feet of natural gas has been preserved from flaring, equating to removing roughly 630,000 cars from the roads annually.
The AI Pivot
Cully Cavness, Crusoe's co-founder and COO, highlighted the burgeoning dominance of Crusoe's AI business in the company's revenue portfolio. n an interview with CNBC The pivot towards AI is a testament to shifting opportunities within the market landscape.
From the company's inception, Crusoe has been quietly building its AI prowess, according to Chase Lochmiller, CEO and co-founder, during his CNBC discourse.
Crusoe is keenly committed to developing vast-scale AI data centers; in Abilene, Texas, the construction of a hyperscale campus is underway, starting with a 206-megawatt capacity.
Anticipated to reach a capacity of 1.2 gigawatts by mid-2026, Crusoe boasts that this Texan venture might break new ground in swift greenfield data center development.
In addition, Crusoe is expanding its cloud offering, providing on-demand access to powerful GPUs, already utilizing green energy sources like geothermal and hydropower in Iceland.
Cavness shared in a CNBC interview that the company perceives a significant momentum ahead, with existing initiatives providing a head start alongside further future prospects.
In December, Crusoe closed a Series D financing round, bagging $600 million at a valuation of $2.8 billion, fueling its AI infrastructure expansion.
NYDIG, estimated at a $7 billion valuation, intends to continue its investment in the newly acquired Bitcoin mining sector, recognizing the importance of sustaining Bitcoin's security via proof-of-work.
Ross Stevens, NYDIG's founder and executive chairman, underscored the critical significance of keeping Bitcoin secure while minimizing costs, especially as fiat currencies appear to be dwindling compared to Bitcoin globally.
The completion of this transaction hinges on necessary regulatory approvals and customary consents, with both parties confident in bolstering their market foothold post-deal.
Lochmiller expressed pride in Crusoe’s groundbreaking efforts to reclaim wasted energy like gas flaring for Bitcoin network power, underscoring its symbiosis with NYDIG’s Bitcoin custody, trading, and mining enterprises.
NYDIG's CEO, Tejas Shah, voiced eagerness about the acquisition, praising Crusoe for its extraordinary Bitcoin mining journey marked by innovation and collaboration with industry-leading talents to tap into previously inaccessible energy sources.
This transaction marks a pivotal re-direction within the cryptocurrency and computing sectors, as entities like Crusoe transition from cryptocurrency mining to AI infrastructure, following the trajectory of CoreWeave.
CoreWeave, a fellow trailblazer in the shift from crypto to AI, is on track for a public market debut, potentially catapulting its valuation well beyond the $25 billion mark.
