LandBridge Seeks $319M Valuation in US IPO, Keen on Tapping Bitcoin Mining Activities

LandBridge owns over 220,000 acres in the oil-rich Permian Basin. It generates revenue by leasing land and selling extracted resources

LandBridge, a company that owns land in the oil-rich Permian Basin, is seeking to raise $319 million through an initial public offering (IPO) in the United States. The company is targeting a valuation of $1.6 billion.

While the IPO is generating interest and making headlines, LandBridge is also exploring opportunities in Bitcoin mining. According to Matthew Sigel, the Head of Digital Assets at VanEck, an official from LandBridge, who wished to remain anonymous, mentioned the possibility of crypto mining as a growth vector for the company.

LandBridge generates revenue by leasing land and selling extracted resources, such as oil and natural gas. The company’s focus on royalty contracts is intended to protect it from the price volatility common in the commodity market.

However, LandBridge is now looking to expand deeper into the commodity and energy sector. At the same time, the company sees an opportunity in crypto mining to diversify its revenue streams and expand its operations.

The official highlighted the existing infrastructure, such as roads and power lines, as a selling point for crypto mining facilities and data centers.

Typically, crypto and Bitcoin mining farms require massive energy consumption and reliable infrastructure to ensure consistency and reliability. The mining equipment needs to be operational every day of the week to maximize network rewards.

Bitfarms Expands Presence As Donald Trump Wants America To Lead Crypto

notably, LandBridge’s interest in offering services to crypto and Bitcoin mining farms is evident in recent news from Bitfarms.

According to a press release, the Bitcoin mining company has acquired new land and power capacity in Pennsylvania. The decision will allow Bitfarms to double down on its mining operations and expand its presence in the United States.

Bitfarms selected the Pennsylvania site for its “access to competitive electricity supply and the opportunity to optimize and hedge energy costs effectively.”

The strategic move comes as miners are adjusting to operating more efficiently to maintain profitability following the April 20 Halving.

Currently, in the fifth epoch, the network has slashed miner rewards to 3.125 BTC, down from 6.25 BTC.

Also noteworthy is Bitfarms’ expansion and LandBridge’s consideration of Bitcoin mining in the context of Donald Trump‘s campaign to return to power in November and his advocacy for America to lead crypto activities.

Recently, Trump expressed support for BTC, reversing his previous stance on the matter. At present, the United States is the largest source of the Bitcoin network hash rate, which stands at over 593 EH/s according to Blockchain.com. Following the 2021 China crackdown, the U.S. has become the center of crypto mining and innovation.

News source：https://www.kdj.com/cryptocurrencies-news/articles/landbridge-seeks-m-valuation-ipo-keen-tapping-bitcoin-mining-activities.html

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