LandBridge, a US company that buys large tracts of land for oil and gas extraction, says it wants to attract crypto miners as part of its future strategy. This announcement comes during the launch of their initial public offering (IPO) on Monday.
LandBridge introduces innovative strategy
The company said on June 17 that it is offering 14.5 million shares, with an expected price between $19 and $22 per share. This could lead to a valuation of up to $1.6 billion. The company wants to list on the New York Stock Exchange under the symbol “LB.”
Official records show that LandBridge owns approximately 220,000 acres in and around the Delaware sub-basin, rich in oil and natural gas, in the Permian Basin region of Texas and New Mexico.
LandBridge suggests that their country can serve more than just oil and gas producers. Crypto miners and data centers can also benefit from access to water, roads, fiber infrastructure and power – and the company can make a lot of money by charging them for this.
“We have identified and are currently exploring opportunities to receive compensation for the use of our land by crypto mining, data centers, energy storage facilities and commercial fuel stations.”
LandBridge said there is already one “crypto currency facility” using their country. In 2023, they earned $52.1 million in royalty income outside of oil and gas, including crypto miners – a 56% increase from the previous year.
The land of LandBridge in dark orange is located on the border between Texas and New Mexico. Source: LandBridge
“We would not own or operate such projects, nor do we expect to incur major capital expenditures in connection therewith,” the company added.
However, LandBridge does expect to receive “land use fees and other payments related to the use of our lands,” including fees for water they supply to crypto miners to keep their equipment cool.
Texas power grid under pressure
Their country is well positioned to attract Bitcoin miners who have flocked to Texas for its cheap power and favorable regulations.
But state lawmakers are now turning against the energy-hungry crypto miners and artificial intelligence data centers.
Local media reported earlier this week that demand from crypto and AI is putting a strain on Texas’ power grid, according to the director of the organization that manages the grid – ERCOT boss Pablo Vegas.
“We need to keep a close eye on these two sectors,” Texas Lieutenant Governor Dan Patrick wrote on June 12. “They create few jobs compared to the enormous demand they place on our grid.”
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Source: https://newsbit.nl/landbridge-een-amerikaans-bedrijf-gespecialiseerd-in-de-aankoop-van-land-voor-olie-en-gaswinning-verdient-geld-aan-bitcoin-miners/
