LandBridge IPO features crypto mining in the heart of oil country
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A Houston-based land acquirer in one of the country's highest-producing oil basins launched an initial public offering Monday, in what looks like an indirect play on the crypto-mining sector.
Why it matters: LandBridge's IPO will test the market — and regulatory appetite — for crypto-adjacent deals, with other more crypto-y public debuts waiting in the wings since the last bull market.
Catch up quick: Landbridge said it plans to sell 14.5 million shares through the IPO priced between $19 and $22.
- The midpoint of the proposed range would give the company a $1.5 billion market cap, according to IPO filings.
- It filed for an IPO confidentially in October, when crypto positivity was bubbling over.
Zoom in: LandBridge owns 220,000 surface acres and 4,180 gross mineral acres around the Delaware sub-basin in the Permian Basin region in New Mexico and Texas — land, the company said, that would support operations — like crypto miners — with access to water cooling and fiber optic infrastructure.
- Besides generating fees from oil and natural gas producers, LandBridge has entered into, or is pursuing, long-term commercial contracts with solar power, power storage, data management and crypto mining businesses, but also doesn't "expect to own or operate such projects."
- It has one crypto mining facility deal so far.
The company was formed by private equity firm Five Point Energy and one of its portfolio companies, WaterBridge, a midstream water business that primarily operates under long-term contracts with oil and gas exploration and production, or E&P, companies.
- LandBridge generated roughly $102 million in total revenue for the 12 months ended in March, from the use of its surface acreage, the sale of resources from its land as well as oil and gas royalties.
- Crypto mining revenue would contribute to its "non-oil and gas" royalty segment. Revenue from there increased 56% last year to $52 million, according to filings.
What we're watching: While Texas has been a mecca for bitcoin miners (the largest ones operate there), LandBridge is tapping into the segment at a tricky time.
- The chief of ERCOT, which manages the state's power grid, recently said that outsize demand from AI and crypto was testing its capacity — comments that jolted lawmakers in the state.
What's next: Shares are expected to price next week.
- Goldman Sachs is the lead book-runner for the offering, with assistance from other Wall Street and energy-focused firms.
- The company plans to list on the NYSE under the symbol LB.
