LandBridge, a US company that has acquired large tracts of land for oil and gas production, said on Monday it plans to attract cryptocurrency miners as part of its future strategy as it launches its initial public offering (IPO).
The company said on June 17 that it would be offering 14.5 million shares, priced between $19 and $22, potentially valuing the shares at up to $1.6 billion. It will be listed on the NYSE under the symbol “LB”.
Regulatory filings show LandBridge owns about 220,000 acres of surface area in and around the oil- and natural gas-rich Delaware Subbasin in the Permian Basin region of Texas and New Mexico.
LandBridge has suggested its land could serve as more than just an oil and gas producer. Cryptocurrency miners and data centers benefit from access to water, roads, fiber infrastructure, and power, and companies can make a lot of money by charging for them.
“We have identified and are currently pursuing opportunities to collect surface fees from cryptocurrency mining, data centers, power storage facilities and commercial fuel stations.”
LandBridge said it already has one “cryptocurrency facility” using its land. In 2023, it generated $52.1 million in non-oil and gas-related royalty revenue, including from cryptocurrency miners, a 56% increase from the previous year.
“We will not own or operate any such projects and we do not anticipate incurring significant capital expenditures in connection with them,” he added.
However, LandBridge expects to receive “surface use fees and other payments related to the utilization of our land,” including fees for the water it supplies to cryptocurrency miners to keep their equipment cool.
Related: CleanSpark has acquired five mining facilities in Georgia.
The land is well-positioned to attract cryptocurrency miners, who have flocked to Texas for its cheap power and comfortable regulatory framework.
But state lawmakers are powering power-hungry cryptocurrency miners and artificial intelligence data centers.
Earlier this week, local media reported that demand for cryptocurrency and AI was putting a strain on Texas' power grid, according to the head of the organization that runs ERCOT, Pablo Vegas.
“We need to take a closer look at both of these industries,” Texas Lieutenant Governor Dan Patrick wrote to X on June 12. “They produce very few jobs compared to the enormous demands they place on our electric grid.”
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