Crusoe Energy raises $505 million to mine Bitcoin with excess flared gas

The threat of a climate disaster is particularly severe nowadays. The tremendous rise of mining has only aggravated the situation due to the massive amount of power required. As a result, several mining organizations are working hard to find a solution.

Crusoe Energy System, a U.S. company that uses associated petroleum gas from oil production to mine cryptocurrency, has secured $505 million in a Series C fundraising round. Given reports that Crusoe Energy Systems was involved in a bitcoin conversion pilot project with Exxon, the company claimed that it had received additional investment. G2 Venture Partners (G2VP) led the Series C fundraising round, bringing total resources to $747.5 million.

Furthermore, the additional funding will be used to extend the company’s “Digital Flare Mitigation” technology in the United States and worldwide, as well as to build CrusoeCloud, a new cloud computing platform that will host energy-intensive high-performance computing (HPC) systems. CrusoeCloud will go public later this year, according to Lohmiller.

The disadvantages of Crusoe Energy’s mining process

Some analysts believe that such “natural gas mitigation” measures are nothing more than “false solutions,” and that they will stay such as long as oil is utilized to achieve them. According to Arvind Ravikumar, a researcher at the University of Texas, the entire system is a hoax that might lead to incentives to consume fossil fuels as well as greater drilling. Finally, he noted that this strategy still necessitates the use of natural gas.

On the other hand, Paasha Mahdavi, a political science professor at the University of California, compared such a system to a leaking gasoline pipeline in which, instead of repairing the leak, cars begin filling up from it, forcing the engine to pump the gasoline to run at full capacity. Finally, several scientists, such as North Seattle College Professor Heather Price, concurred with these researchers. They just do not feel that this answer will have a significant impact on the overall climate issue.

The oil and cryptocurrency mining

Indeed, Crusoe’s technology is currently placed in 86 oil production wells where associated gas is mined. The establishment of these mining facilities is a win-win situation: Crusoe generates bitcoins, while oil firms avoid burning related gas, paying taxes on it, and causing an outcry from environmentalists. The revenues will also be used to speed the launch of CrusoeCloud, a cloud platform powered by co-gas as well as a range of renewable energy sources. The firm intends to grow from 157 to 250 personnel by the end of the year. Exxon Mobil announced in March that it was expanding a pilot program to mine cryptocurrencies using companion gas.

The bit4you cryptocurrency trading platform offers a wide range of crypto tools. It includes crypto exchange, trading, staking, currency-to-currency swap, Demo mode, etc. Nowadays, the list includes more than 45 of the most profitable coins and it is constantly updated. Also, we are pleased to inform you that cryptocurrency staking is already available for our customers! Visit the education section Academy to learn more about staking. If you have a friend interested in crypto, do not hesitate to invite him and get a special reward for a referral. The crypto world is a new reality, so stay up to date with bit4you!

Valentyna Bereza, Team bit4you.