26-3-2025 – Crusoe Energy is set to divest its Bitcoin mining operations and digital flare mitigation business to New York Digital Investment Group (NYDIG), marking a significant shift in the company’s trajectory.
The landmark deal encompasses the transfer of 425 modular data centres spread across seven American states and Argentina, with approximately 135 staff members transitioning to NYDIG whilst maintaining their current roles. Whilst specific financial terms remain under wraps, NYDIG’s parent company, Stone Ridge, is poised to retain majority ownership of the merged entity.
Since its inception in 2018, Crusoe has been at the forefront of innovative energy solutions, pioneering Digital Flare Mitigation (DFM) technology. This groundbreaking system harnesses otherwise wasted natural gas from oil fields, converting flare gas into electricity to power both Bitcoin mining and AI computing operations. The company’s Bitcoin mining venture has grown to represent roughly one per cent of global Bitcoin mining capacity.
NYDIG’s executive chairman, Ross Stevens, emphasised the critical importance of maintaining Bitcoin network security at optimal cost efficiency, particularly noting the declining value of traditional currencies against Bitcoin worldwide. The acquisition aligns with NYDIG’s strategy to strengthen its position in Bitcoin’s proof-of-work security framework.
Meanwhile, Crusoe is setting its sights on ambitious AI infrastructure developments. The company plans to establish one of the world’s most formidable GPU clusters, with construction of a massive hyperscale data centre campus in Abilene, Texas, scheduled to commence in June. The facility’s initial 206-megawatt capacity is projected to expand to an impressive 1.2 gigawatts by mid-2026, potentially setting new records for greenfield data centre development.
Chief Executive Officer Chase Lochmiller revealed that AI infrastructure has been integral to Crusoe’s strategy since its founding, with the segment steadily growing in significance. The company has already established AI operations in Iceland, powered exclusively by renewable geothermal and hydropower sources, whilst expanding its cloud platform to offer on-demand GPU access.
The transition mirrors broader industry trends, as exemplified by CoreWeave, another former crypto player now focused on AI. CoreWeave, which provides cloud-based Nvidia processors to tech giants like Meta and Microsoft, is preparing for a public listing with a projected valuation exceeding $25 billion, having achieved remarkable revenue growth of over 700% to $1.92 billion in the previous year.
Cully Cavness, Crusoe’s president and chief operating officer, confirmed that AI operations now constitute their primary revenue stream, highlighting the company’s strategic advantage in this rapidly expanding sector. The decision to separate the AI and Bitcoin operations stemmed from their distinct requirements regarding uptime, scalability, and energy sourcing.
