Data center company Crusoe Energy Systems is sounding out investor interest in a potential debt deal that would help grow the firm’s Bitcoin mining business, according to people with knowledge of the mater.
Crusoe is seeking a $100 million to $125 million loan, said the people, who asked not to be identified because talks are private. The potential financing would be backed by Crusoe’s Bitcoin mining and generation equipment and deal discussions are in the early stages and could change, the people added.
Crusoe, which is working with investment bank Ducera Partners on the capital raising process, aims to ink a deal by the end of the year to take advantage of cryptocurrency’s recent momentum, the people said.
A representative for Crusoe didn’t respond to requests for comment. A representative for Ducera didn’t provide comment.
Denver-based Crusoe works with oil and gas companies to capture surplus gas tied to energy production and converts those byproducts into electricity to power data centers and crypto-mining operations.
The company’s projects are designed to alleviate flaring, a long-standing issue in the shale industry. Oil producers deliberately burn off unwanted natural gas—a byproduct of oil drilling—because it is often more cost-effective than selling it.
Regulators and investors are increasingly scrutinizing such practice because it releases carbon dioxide and causes air pollution. New Mexico’s oil regulator approved stricter rules in March that will end routine natural gas flaring, and BP said it’s targeting zero routine flaring in its US onshore operations by 2025.