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Bitcoin Miner Crusoe Energy Buys Fellow Flared-Gas Operator GAM
Acquisition opportunities are arising amid a crypto bear market that is squeezing miners.
Updated May 9, 2023, 3:59 a.m. UTCPublished Oct 12, 2022, 1:58 p.m. UTC
Bitcoin miner Crusoe Energy has acquired peer Great American Mining (GAM), adding 9% to its capacity as the industry continues to consolidate amid a challenging market that is squeezing miners' margins.
In the past few months, miners have seen their profits dwindle amid the bear market and rising energy prices globally. Some have already turned to mergers and acquisitions for survival, with others taking advantage of the opportunities.
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Under the agreement, Crusoe will take over all of GAM's operating assets across five states, the firm said in a press release on Wednesday. Those assets comprise more than 10 megawatts (MW) of operational bitcoin mining capacity, about 4,000 application-specific integrated circuit (ASIC) miners, a manufacturing facility in Louisiana, 24 employees and commercial relationships with several large-scale energy producers in North Dakota and Montana. GAM's facilities will be using Crusoe's patented technology for flared-gas mitigation.
GAM produces containers for bitcoin mining in Ponchatoula, Louisiana, and deploys them across North Dakota, Oklahoma, and Pennsylvania, according to its website.
The acquisition will add around 9% to Crusoe’s capacity, such that the firm will count 125 deployed flare gas-powered modular data centers. This will, in turn, increase its capacity to reduce CO2-equivalent emissions toapproximately 800,000 metric tons per year, which is the equivalent of removing approximately 170,000 cars from circulation, the company said.
Crusoe and GAM both use flared gas to mine bitcoin, meaning they power their machines using excess gas that is released when drilling for fossil fuels, thus reducing their emissions. This is touted as environmentally friendly and the Biden White House recognized its potential to mitigate greenhouse gas emissions in a recent report.
Crusoe is working with oil producers in the Middle East for flared-gas mining and was reported to have partnered with ExxonMobil. Meanwhile, another oil and gas giant ConocoPhillips, is also looking into the industry.
Read more: Flared-Gas Bitcoin Miner Crusoe Energy Raises $350M Series C
Eliza Gkritsi
Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI, having previously covered mining for two years. She previously worked at TechNode in Shanghai and has graduated from the London School of Economics, Fudan University, and the University of York. She owns 25 WLD. She tweets as @egreechee.
Aoyon Ashraf
Aoyon Ashraf is CoinDesk's managing editor for Breaking News. He spent almost a decade at Bloomberg covering equities, commodities and tech. Prior to that, he spent several years on the sellside, financing small-cap companies. Aoyon graduated from University of Toronto with a degree in mining engineering. He holds ETH and BTC, as well as ALGO, ADA, SOL, OP and some other altcoins which are below CoinDesk's disclosure threshold of $1,000.
