A company that captures waste gas from oil to fuel high-performance computing is divesting its Bitcoin mining operations to a digital investment group based in New York to shift its focus toward artificial intelligence.
In an announcement made on March 25, the company revealed its intention to sell its Bitcoin (BTC) mining operation, which also encompasses its digital flare mitigation services, pending regulatory approvals and necessary consents.
The transaction will involve the firm’s 270 megawatts of energy generation capabilities across more than 425 modular data centers located in the United States and Argentina, and include 135 employees who will transition to the new owner, with no jobs being cut as part of this deal.
Established in 2018, the company developed technology to capture waste gas produced during oil extraction and refinement—gas that would typically be flared—and repurpose it to power Bitcoin miners.
Image depicting gas flaring in action.
This technology converts gas, or “stranded energy,” into the electricity necessary for both Bitcoin mining and AI data centers. Some reports indicate that the mining operation accounts for approximately 1% of the global Bitcoin mining output.
Focus on AI Expansion
However, the company is now steering its technological efforts towards developing AI infrastructure.
“The AI sector has become our primary revenue driver,” said Cully Cavness, the co-founder, president, and COO.
Recently, the firm expanded its AI data center in Abilene, Texas, to 1.2 gigawatts, coinciding with the announcement of a joint venture with an investment firm aimed at creating large-scale data center campuses in the U.S. to enhance AI capabilities.
Source: Matthew Sigel
In December of last year, the firm raised $600 million in a Series D funding round, achieving a valuation of $2.8 billion to further its AI initiatives.
“We believe there’s a massive opportunity ahead of us, and we enjoy a significant advantage with our current projects and more developments coming shortly,” Cavness added.
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The digital investment group stated that the acquisition of the Bitcoin mining operations will enhance its efforts in supporting Bitcoin’s proof-of-work security.
The founder and executive chairman highlighted the importance of maintaining the security of the Bitcoin network while keeping operational costs as low as possible, citing the ongoing depreciation of fiat currencies compared to Bitcoin globally.
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