LandBridge, a U.S.-based firm specializing in land acquisition for oil and gas production, is now looking to attract crypto miners as part of its future strategy.
This announcement coincides with the launch of its initial public offering (IPO) on Monday.
On June 17, LandBridge revealed that it would offer 14.5 million shares, priced between $19 and $22 each, potentially reaching a valuation of up to $1.6 billion.
The company plans to list on the NYSE under the ticker “LB.”
According to regulatory filings, LandBridge owns approximately 220,000 surface acres in the Delaware subbasin of the Permian Basin, spanning Texas and New Mexico, an area rich in oil and natural gas.
LandBridge sees potential for its land to serve more than just oil and gas producers.
The company believes crypto miners and data centers could also benefit from access to water, roads, fiber optic infrastructure, and power, providing a lucrative opportunity for the firm.
“We have identified and are currently pursuing opportunities to receive surface use payments from cryptocurrency mining, data centers, power storage facilities, and commercial fueling stations,” the company stated.
LandBridge disclosed that it already has one “cryptocurrency facility” operating on its land.
READ MORE: Earn More Than in a Bank With Special Programs From TFS Token
In 2023, it earned $52.1 million from non-oil and gas-related royalty revenue, which includes income from crypto miners, marking a 56% year-on-year increase.
“We would not own or operate such projects or expect to incur significant capital expenditures in connection therewith,” LandBridge added.
Instead, the company expects to “receive surface use fees and other payments in connection with the utilization of our land,” including fees for water supplied to crypto miners to cool their rigs.
The firm’s land is strategically positioned to attract crypto miners, who are drawn to Texas for its affordable power and favorable regulatory environment.
However, the increasing demand from crypto miners and artificial intelligence data centers is causing concern among Texas lawmakers.
Local media recently reported that the surge in crypto and AI activity is straining Texas’ power grid.
ERCOT boss Pablo Vegas highlighted this issue, and Texas Lieutenant Governor Dan Patrick expressed concerns on social media, stating, “They produce very few jobs compared to the incredible demands they place on our grid.”
To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.
