Crusoe to Sell Bitcoin Mining Business to NYDIG, Shifting Focus to AI Development

Crusoe Sells Bitcoin Mining Business to NYDIG to Focus on AI

In a strategic shift, Crusoe Energy has announced that it will sell its Bitcoin mining business to New York Digital Investment Group (NYDIG), marking a major pivot toward artificial intelligence (AI). The deal, which is subject to regulatory approvals, will include Crusoe’s digital flare mitigation business and a substantial portion of its infrastructure dedicated to mining Bitcoin.

The Deal

The acquisition will see NYDIG take control of 425 modular data centers spread across seven US states and Argentina, along with 270 megawatts of power generation technology. The deal will also include the transfer of 135 employees from Crusoe, all of whom will join NYDIG, as no job cuts are anticipated from this transaction. Learn more about Crusoe’s shift to AI here.

Crusoe, which was founded in 2018, pioneered a technology that captures waste gas from oil extraction—gas that would typically be burned off during the oil refinement process—and uses it to power high-performance computing required for Bitcoin mining. This technology, referred to as gas flaring mitigation, converts otherwise wasted energy into electricity for Bitcoin miners and data centers.

Crusoe’s Role in Bitcoin Mining

Crusoe’s Bitcoin mining operation has made a significant impact, with some reports suggesting that it accounts for roughly 1% of global Bitcoin mining. By utilizing waste gas as an energy source, Crusoe was able to offer a more environmentally friendly alternative to traditional Bitcoin mining operations that often rely on fossil fuels. Read more about Crusoe's environmental impact and innovations here.

Pivoting to AI Infrastructure

Despite its success in the Bitcoin mining sector, Crusoe is shifting its focus to AI infrastructure. The company has revealed that its AI division has grown rapidly and now represents the majority of its revenue. Crusoe recently expanded its AI data center in Abilene, Texas, to a massive 1.2 gigawatts, underscoring the company's commitment to AI development.

Cully Cavness, co-founder and COO of Crusoe, discussed the company’s evolution, saying, “The AI business — it’s become the majority of our revenue.” He also emphasized the company's recent partnerships and investments, including a $600 million Series D funding round at a $2.8 billion valuation, which will be used to expand Crusoe's AI capabilities.

Crusoe’s shift towards AI comes at a time when the company is making moves to develop large-scale data center campuses across the US. A joint venture with Engine No. 1, a prominent investment firm, aims to build AI-focused data centers designed to meet the growing demand for machine learning and artificial intelligence workloads. Learn about Crusoe’s AI venture here.

NYDIG’s Bitcoin Mining Expansion

The acquisition by NYDIG is part of the firm’s ongoing commitment to expanding its role in supporting Bitcoin’s proof-of-work security mechanism. NYDIG’s founder and executive chairman, Ross Stevens, emphasized the importance of securing the Bitcoin network while maintaining the lowest possible cost for operations. In a statement, Stevens said, “It is critically important to keep the Bitcoin network secure, and at the lowest possible cost,” adding that the current state of global fiat currencies was weakening against Bitcoin, reinforcing the importance of strengthening the network’s security.

Looking Ahead

As Crusoe Energy moves forward with its AI-focused strategy, it will be interesting to watch how the company continues to shape the future of AI infrastructure. Meanwhile, NYDIG’s acquisition positions the firm as a significant player in the Bitcoin mining industry, with a focus on ensuring the security and stability of the Bitcoin network.

With AI infrastructure taking center stage at Crusoe, the company looks set to compete in a rapidly expanding industry, while NYDIG strengthens its position in Bitcoin mining—a key part of the cryptocurrency ecosystem. Find out more about NYDIG's role in Bitcoin here.

This acquisition signals a pivotal moment for both companies as they move toward their respective futures in the ever-evolving tech landscape.