Crusoe Energy Sells Bitcoin Mining Arm, Doubles Down on AI Expansion

Crusoe Energy, a pioneer in converting waste gas into power for Bitcoin mining, is offloading its mining business to New York Digital Investment Group (NYDIG) as part of a major strategic shift toward artificial intelligence. Announced on March 25, the deal includes the sale of Crusoe’s digital flare mitigation operation, spanning 270 megawatts of power generation across 425 modular data centers in the U.S. and Argentina.

As part of the acquisition, 135 Crusoe employees will transition to NYDIG, with no job cuts expected. The transaction is still subject to regulatory approvals and other consents before being finalized.

Founded in 2018, Crusoe developed technology that captures waste gas from oil extraction—typically burned off in a process known as gas flaring—and repurposes it into electricity for Bitcoin mining and AI data centers. According to some estimates, Crusoe’s mining operations accounted for around 1% of the global Bitcoin network.

AI Takes Center Stage Amid Growing Demand

While Crusoe made a name for itself in sustainable Bitcoin mining, the company is now pivoting toward the booming AI infrastructure market. According to Cully Cavness, the company’s co-founder, president, and COO, the AI business has become the firm’s primary revenue driver.

To support this transition, Crusoe recently expanded its AI data center in Abilene, Texas, boosting capacity to 1.2 gigawatts. The move comes on the heels of a joint venture with investment firm Engine No. 1 to build large-scale AI data campuses across the U.S.

Crusoe has also attracted substantial funding for its AI ambitions. In December 2024, the company closed a $600 million Series D funding round, pushing its valuation to $2.8 billion. Cavness expressed confidence in Crusoe’s momentum, stating, “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.”

NYDIG Expands Its Bitcoin Mining Footprint

For NYDIG, the acquisition represents a significant step in reinforcing Bitcoin’s proof-of-work security. Ross Stevens, NYDIG’s founder and executive chairman, noted the importance of keeping Bitcoin secure and cost-efficient, particularly as fiat currencies weaken against BTC globally.

The deal cements NYDIG’s growing presence in the mining sector, giving it access to Crusoe’s established infrastructure and expertise in sustainable energy-powered mining.