NYDIG Set to Expand Hashrate after Acquiring Crusoe’s Bitcoin Mining Assets

Bitcoin asset manager NYDIG is set to acquire Crusoe Energy’s Bitcoin mining assets in a bid to scale up its proprietary Bitcoin mining operation.

In a release on Tuesday, NYDIG announced it has entered into a definitive agreement with Crusoe to acquire more than 270 megawatts of power generation technology, which is said to have nearly zero direct electricity costs.

Crusoe, which raised $600 million in December at a valuation of $2.8 billion, will focus on AI infrastructure after divesting its Bitcoin mining assets. Founded in 2018, Crusoe is known for capturing and converting natural gas from oil fields into electricity to power modular data centers.

According to the release, Crusoe’s Bitcoin mining business includes over 20 sites across seven states, as well as a joint venture in Argentina. The transaction, which is subject to regulatory approval and customary consents, will result in approximately 135 Crusoe employees joining NYDIG’s team to continue the Bitcoin mining operation.

The two companies did not disclose the value of the transaction or the exact hashrate operated by Crusoe. However, Crusoe claimed it has deployed more than 425 modular data centers for Bitcoin mining to date.

The acquisition is expected to strengthen NYDIG’s position in proprietary mining, which has expanded with the addition of hundreds of thousands of ASIC miners since 2022, as well as through the acquisition of and investment in distressed Bitcoin mining operations.

Last year, NYDIG made a strategic investment in Coinmint, a New York-headquartered colocation provider, which has since begun evacuating hosting tenants to make room for NYDIG’s proprietary hashrate.

Earlier this month, NYDIG’s parent company and its newly acquired mining operation, Consensus Technology, filed a lawsuit against Mawson Infrastructure, accusing the hosting firm of breach of contract. A Delaware court has issued a restraining order temporarily barring Mawson from blocking Consensus’ access to the hosted miners.