Fun

Oil land buyer LandBridge makes a nod to crypto miners in $320M IPO

News Feed - 2024-06-19 02:06:45

Jesse Coghlan3 hours agoOil land buyer LandBridge makes a nod to crypto miners in $320M IPOLandBridge has a huge amount of land in the middle of America’s oil country, but it also says it can make big money off crypto miners.597 Total views3 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksLandBridge, a United States firm that acquires large swaths of land for oil and gas production, says it intends to court crypto miners as part of its future strategy — amid the launch of its initial public offering (IPO) on Monday.


The company said on June 17 that it’s offering 14.5 million shares, which it anticipates will be priced between $19 and $22, potentially giving it a valuation of up to $1.6 billion. It plans to be listed on the NYSE under the ticker “LB.”


Regulatory filings show LandBridge owns around 220,000 surface acres in and around the oil and natural gas-rich Delaware subbasin in the Permian Basin area of Texas and New Mexico.


LandBridge suggested its land could serve more than just oil and gas producers. Crypto miners and data centers could also benefit from access to water, roads, fiber optic infrastructure and power — and the firm could make big money billing them for it.“We have identified and are currently pursuing opportunities to receive surface use payments from crypto currency mining, data centers, power storage facilities and commercial fueling stations."


LandBridge said it already has one “crypto currency facility” using its land. In 2023 it earned $52.1 million from non-oil and gas-related royalty revenue — which includes crypto miners — a 56% year-on-year bump.LandBridge’s owned land in dark orange sits on the border between Texas and New Mexico. Source: LandBridge


“We would not own or operate such projects or expect to incur significant capital expenditures in connection therewith,” it added.


LandBridge would, however, expect to “receive surface use fees and other payments in connection with the utilization of our land,” including fees for water it supplies to crypto miners to keep their rigs running cool.


Related:CleanSpark acquires 5 mining facilities in Georgia


Its land is well-positioned to woo crypto miners who have flocked to Texas for its cheap power and cozy regulatory framework.


But the state’s lawmakers are turning on the power-hungry crypto miners and artificial intelligence data centers.


Local media reported earlier this week that crypto and AI demand is putting strain on Texas’ power grid, according to the head of the organization that runs it — ERCOT boss Pablo Vegas.


“We need to take a close look at those two industries,” Texas Lieutenant Governor Dan Patrick wrote to X on June 12. “They produce very few jobs compared to the incredible demands they place on our grid.”


Magazine — ‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters# Mining# Business# Texas# Oil and Gas# Bitcoin MiningAdd reaction

News Feed

NYU Professor ‘Dr. Doom’ Says 99% of Crypto Is a Scam — Tells Investors to ‘Absolutely Stay Away’
NYU Professor "Dr. Doom" Says 99% of Crypto Is a Scam — Tells Investors to "Absolutely Stay Away" NYU Professor Nouriel Roubini, aka Dr. Doom, has warned that “99.99% of c
First AMM Layer2 DEX ZKSwap Announces Testnet Incentive Program with 1 Million ZKS Tokens Rewards
First AMM Layer2 DEX ZKSwap Announces Testnet Incentive Program with 1 Million ZKS Tokens Rewards PRESS RELEASE. ZKSwap developed by L2Lab is the first layer2 de
Ezra Reguerra11 hours agoSmart contracts continue to rise amid market downturn: BNB Chain Q2 reportBNB Chain noted that the rise in verified smart contracts highlights the demand for security, reliability and scalability
Bitcoin Set To Gain Over $300 Billion From Companies In Next 5 Years, Analysts Say
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Bitcoin ATH Met With Mixed Whale Reactions – What’s The Market Signal?
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
3 signs that Bitcoin price is not ready to make a new all-time high
Marcel Pechman2 hours ago3 signs that Bitcoin price is not ready to make a new all-time highChina-focused stablecoin data, retail investor participation and skeptical BTC derivatives markets are all signs that Bitcoin pr
Savannah Fortis11 hours agoGemini Earn users could recover all funds in new DCG remuneration schemeDCG suggests a new deal in Genesis bankruptcy, offering unsecured creditors 70%–90% baseline recovery; if approved, it
Tom Blackstone11 hours agoNFT-optimized Palm Network to become a Polygon ZK SupernetThe Ethereum sidechain will transition to a proof-of-stake network this August and become a full-fledged layer 2 based on Polygon’s ze
Binance and Kazakhstan to Share Information About Crypto-Related Crime
Binance and Kazakhstan to Share Information About Crypto-Related Crime Cryptocurrency exchange Binance has agreed to support Kazakhstan in ensuring the safe development of the coun
Yellen Says US Could Back All Deposits at Smaller Banks if Needed to Prevent Contagion
Yellen Says US Could Back All Deposits at Smaller Banks if Needed to Prevent Contagion U.S. Treasury Secretary Janet Yellen says the federal government could guarantee all deposits
Indian Government Reveals 11 Crypto Exchanges Investigated for Tax Evasion, $13 Million Recovered
Indian Government Reveals 11 Crypto Exchanges Investigated for Tax Evasion, $13 Million Recovered The Indian government has revealed that 11 cryptocurrency exchanges have been unde
XRP To Hit $8, No Double Digits This Cycle — Warns Crypto Analyst
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu