Apr 22, 2022 - Economy

Crusoe raises $350 million for flared gas Bitcoin mining

Illustration of a tree branch with pixelated crypto coins as fruit

Illustration: Sarah Grillo/Axios

Crusoe Energy Systems, a Denver-based flared gas bitcoin miner, raised $350 million in Series C venture capital funding led by G2VP. It also secured $155 million in new credit facilities.

Why it matters: Crusoe's tech, which uses waste natural gas to power mining activities, could cut conflicts between crypto and climate. The company soon plans to expand its commercial efforts into cloud computing, which also has giant energy requirements.

But, but, but: CoinDesk's Ayyon Ashraf writes: "In the flaring process, excess natural gas is burned off into the atmosphere as part of oil drilling operations; it has become standard industry practice because of the lack of transportation infrastructure. The process is under environmental scrutiny, however, and President Biden has pledged to cut methane emissions from oil and gas operations."

  • Other investors in the round include Valor Equity Partners, Lowercarbon Capital, Polychain Capital, Bain Capital Ventures, Founders Fund, MCJ Collective, Winklevoss Capital, Zigg Capital, DRW VC, Atreides Management, Exor Seeds, CMT Digital, Upper90, Inclusive Capital Partners, Engine No. 1, Tao Capital, Felicis Ventures, Castle Island Ventures, Mitsui & Co. and FootPrint Coalition Ventures.
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