Crusoe Energy Systems Inc. announced on Thursday that it had secured $505 million from strategic investors to help with bitcoin mining and mitigation. The Series C equity financing round was announced by G2 Venture Partners, a climate venture capital firm..
Crusoe Energy Systems secures $505 million from Strategic Investors
Crusoe Energy Systems has disclosed that it has received $505 million of new funding. This follows a report that Crusoe Energy Systems had been working with Exxon on a pilot for gas-tobitcoin mining. 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.
Crusoe has also obtained credit facilities with an expansion limit of $155 million that were extended to the Series C, which Crusoe announced as closing on Thursday. Crusoe says the new capital will accelerate the company’s mission to “align the future of computing with the future of the climate.”
G2VP was joined by Lowercarbon Capital Capital, Polychain Capital and Bain Capital Ventures. Founders Fund also participated. 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’
Crusoe’s Series C financing and credit facility will enable them to launch 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. Crusoe has 86 Digital Flare Mitigation plants, and Crusoe estimates that there is a great deal of carbon being removed from our 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.”
Crusoe, however, isn’t the only company offering bitcoin mining or flare gas mitigation. Greenidge Generation is one of the companies that offers gas-to-bitcoin services. Upstream Data and EZ Blockchain are another. EZ Blockchain for example, announced last May that they were working with Silver Energy (an oil and gas provider in Texas) to create a gas-tobitcoin solution.
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