Crusoe Energy is selling its Bitcoin mining business to NYDIG to focus on AI infrastructure
The deal includes 425 modular data centers across seven US states and Argentina, with 135 Crusoe employees joining NYDIG
Crusoe pioneered technology that captures waste gas from oil fields to power Bitcoin mining operations, preventing approximately 2.7 million metric tons of greenhouse gas emissions
Crusoe’s AI business has grown to become the majority of its revenue
Crusoe is expanding its AI infrastructure with a data center campus in Abilene, Texas, planned to reach 1.2 gigawatts capacity by mid-2026
Crusoe Energy announced on March 25 that it plans to sell its Bitcoin mining operation to New York Digital Investment Group (NYDIG). The transaction will allow Crusoe to focus fully on building artificial intelligence infrastructure.
The deal includes Crusoe’s Digital Flare Mitigation business, which has been operating since 2018. This innovative technology captures waste gas from oil fields that would normally be burned off and converts it into electricity.
NYDIG will acquire 425 modular data centers spread across seven US states and Argentina. These facilities currently account for approximately 1% of global Bitcoin mining capacity.
About 135 Crusoe employees will join NYDIG as part of the transaction. No jobs will be eliminated as a result of the deal, according to the announcement.
Crusoe will retain a major equity position in the combined business. The company will become the second-largest equity holder after Stone Ridge, NYDIG’s parent company.
Crusoe was founded in 2018 with a mission to solve environmental problems in the energy sector. The company pioneered technology that captures gas flaring from oil production and converts it into usable electricity.
This captured energy has powered Bitcoin mining operations for years. The company’s approach has prevented approximately 2.7 million metric tons of greenhouse gas emissions since its founding.
Crusoe’s technology has saved nearly 22 billion cubic feet of natural gas from being flared. This is equivalent to taking about 630,000 cars off the road for a year.
The AI Pivot
“The AI business — it’s become the majority of our revenue,” said Cully Cavness, co-founder and chief operating officer of Crusoe, in an interview with CNBC. The shift toward AI reflects changing market opportunities.
Crusoe has been developing its AI infrastructure from the beginning. “We’d actually been building this AI business since the start of the company,” Chase Lochmiller, Crusoe CEO and co-founder, told CNBC.
The company is now focusing on large-scale AI data center development. In Abilene, Texas, Crusoe is building a hyperscale data center campus with 206 megawatts of initial capacity.
This Texas facility is expected to scale to 1.2 gigawatts by mid-2026. Crusoe claims this project could set speed records for greenfield data center development.
The company is also expanding its cloud platform to offer on-demand access to high-performance GPUs. Crusoe is already running AI workloads in Iceland, powered entirely by geothermal and hydropower.
“We see a huge opportunity in front of us, and we have a big advantage and a big head start with what we’ve already announced — and more coming soon,” Cavness said in his CNBC interview.
Crusoe closed a $600 million Series D funding round in December at a $2.8 billion valuation. This capital will support the company’s AI infrastructure expansion plans.
NYDIG, valued at approximately $7 billion, plans to continue operating and investing in the Bitcoin mining business it’s acquiring. The company sees strategic value in supporting Bitcoin’s proof-of-work security.
“It is critically important to keep the Bitcoin network secure, and at the lowest possible cost,” said Ross Stevens, NYDIG founder and executive chairman. He added that fiat currencies are “collapsing against Bitcoin around the world.”
The transaction requires regulatory approvals and other customary consents before closing. Both companies expect the deal to strengthen their respective market positions.
“Crusoe is proud to have been a pioneer in repurposing otherwise wasted energy resources such as gas flaring to power the bitcoin network,” said Lochmiller. “Our innovative approach to energy utilized for mining is uniquely complementary to NYDIG’s bitcoin custody, institutional trading and mining businesses.”
Tejas Shah, CEO of NYDIG, expressed enthusiasm about the acquisition. “Crusoe has built an extraordinary bitcoin mining business by demonstrating remarkable innovation—bringing together the industry’s top talent to solve complex challenges and unlock untapped energy sources.”
This deal represents a major strategic shift in the crypto and computing industry. As companies like Crusoe pivot from cryptocurrency mining to AI infrastructure, they follow a path similar to CoreWeave.
CoreWeave also started in crypto before shifting to AI. It is now preparing for a stock market debut that could value the company at well over $25 billion.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear