Gas-to-Bitcoin Mining Firm Crusoe Energy Systems Raises $505 Million
On Thursday, the bitcoin mining and flare gas mitigation firm Crusoe Energy Systems Inc. revealed it secured $505 million in new capital from strategic investors. According to the announcement, the Series C equity funding round was led by the climate technology venture capital firm G2 Venture Partners (G2VP).
Crusoe Energy Systems Secures $505 Million From Strategic Investors
Following the report that said Crusoe Energy Systems was working on a gas-to-bitcoin mining pilot with the gas giant Exxon, Crusoe has announced the company has raised $505 million in new funding. The Series C financing round was led by G2 Venture Partners (G2VP) and the latest funding brings Crusoe’s total capital raised to $747.5 million.
The Series C announced on Thursday closed at $350 million, but Crusoe also secured credit facilities that are expandable up to $155 million. Crusoe says the new capital will accelerate the company’s mission to “align the future of computing with the future of the climate.”
In addition to G2VP, the firms Valor Equity Partners, Lowercarbon Capital, Polychain Capital, Bain Capital Ventures, Founders Fund, MCJ Collective, Winklevoss Capital, Zigg Capital, DRW Venture Capital, Atreides Management, Exor Seeds, CMT Digital, and Upper90 participated as well. New investors in Crusoe include Robert Downey Jr.’s Footprint Coalition Ventures, Inclusive Capital Partners, Engine No. 1, Tao Capital, Felicis Ventures, Castle Island Ventures, and Mitsui & Co.
Crusoe’s Data Facilities ‘Prevented an Estimated 2.5 Billion Cubic Feet of Flaring’
The Series C and credit facilities will allow Crusoe to deploy large-scale bitcoin mining and cloud computing operations. The funding will also “propel expansion of [Crusoe’s] Digital Flare Mitigation within the United States and internationally,” the company said. Presently, Crusoe manages 86 Digital Flare Mitigation facilities and the company estimates a lot of carbon is removed from the atmosphere.
“[Crusoe’s] data centers have prevented an estimated 2.5 billion cubic feet of flaring and achieve up to 99.89% elimination of methane emissions, whereas flares typically emit a significant amount of uncombusted methane, a potent greenhouse gas that traps 82.5 times more heat than CO2 over a 20-year timeframe.” Ben Kortlang, a partner at G2 Venture Partners says that the elimination of carbon emissions is extremely helpful toward affecting climate change.
“Eliminating methane emissions from flaring is an immediately actionable and impactful step toward mitigating climate change. Crusoe’s technology converts stranded gas into valuable computing resources,” Kortlang said in a statement. “After a deep dive into flare mitigation and modular data center technologies, we concluded that Crusoe is the clear leader in scale, operational excellence, talent, vision and proven commitment to environmental standards.”
Meanwhile, Crusoe is not the only bitcoin mining and flare gas mitigation firm. Other companies offering gas-to-bitcoin solutions include Greenidge Generation, Upstream Data, and EZ Blockchain. For instance, the company EZ Blockchain revealed last May that the company was working on a gas-to-bitcoin solution with an oil and gas provider from Texas, Silver Energy.
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