Crusoe Energy Acquires GAM to Expand Crypto Mining Operations

Bitcoin and most cryptocurrencies have plummeted as a result of economic uncertainty. The sudden decrease in value resulted in the loss of potentially millions of dollars of capital gains for investors. While prices are expected to climb after the crypto winter, now is an optimal time for companies and investors to double down on the crypto market. 

One company looking to ramp up its mining capabilities is Denver-based Crusoe Energy Systems. On Wednesday, it acquired Great American Mining (GAM) for an undisclosed amount to increase its mining capacity.  

Crusoe Energy is a green energy company that uses gas emissions from the fossil fuel industry to power crypto mining rigs, cloud networks and data centers. This method of using excess gas reduces the overall level of emissions that make it to the atmosphere and is a viable and green power option for crypto mining, according to a September report from the White House.

With its acquisition of GAM, Crusoe Energy will gain around 10 megawatts of operational capacity along with a network of 4,000 ASIC computing systems. ASIC computing systems are specialized devices used for digital currency mining. Crusoe Energy will also gain around 300 employees and several facilities across six states. 

“Our belief at Great American Mining is that bitcoin mining is an important solution to stranded gas and flaring problems — problems that have frustrated the oil and gas industry’s efforts to improve environmental performance and efficient use of Earth’s natural resources for decades,” Todd Garland, founder and CEO of GAM, said in a statement.  

According to Crusoe Energy, the acquisition will also enable it to further scale its Digital Flare Mitigation program. The program provides oil and gas companies with a cost-effective solution to minimize the practice of natural gas burning when extracting oil. The gas not mitigated by the program is used to power Crusoe Energy’s computing operations. 

The program expanded earlier this year following a $350 million Series C equity round back in April.