Earlier today, on December 21st, Halliburton, the second-largest oilfield services company in the world, has made a strategic move into bitcoin mining by investing in 360 Energy, an oilfield bitcoin mining company.
Through its research and development arm, Halliburton Labs, the company announced the addition of 360 Energy to its “collaborative ecosystem.” This partnership marks a significant step in integrating blockchain technology with the oil and gas industry, furthering Halliburton’s commitment to innovation.
Why is this Partnership Important?
According to 360 Energy’s CEO, Chris Alfano, Halliburton Labs has made an equity investment in the company. In addition to the financial backing, this collaboration aims to accelerate the expansion of 360 Energy’s off-grid mining services, particularly for oil and gas companies.
Alfano highlighted that the partnership would focus on developing and executing their In-Field Computing services, a technology that captures flared or stranded natural gas and converts it into energy for Bitcoin mining.
“We will work with Halliburton teams across the operating model to ideate, strategize, develop, and execute our In-Field Computing services with upstream oil and gas companies in the US and abroad,” Alfano said.
The partnership brings together Halliburton’s world-leading expertise in oilfield services and 360 Energy’s innovative solutions in the Bitcoin mining space. Alfano also emphasized the significance of Halliburton’s support, stating, “Halliburton is the premier oil field services company and having their support as an investor signifies the market opportunity.”
360 Energy’s Innovative Mining Model
Based in Austin, Texas, 360 Energy has built an impressive Bitcoin mining operation, utilizing 285 petahashes of mining infrastructure across well sites in Texas. What sets 360 Energy apart is its ability to harness otherwise stranded or flared natural gas, a common byproduct in oil production, and convert it into electricity for Bitcoin mining.
This environmentally conscious approach helps mitigate natural gas waste, making it a win-win for both the oil and gas industry and the Bitcoin sector.
Halliburton, with a market capitalization of $22.64 billion, provides critical services like cementing, directional drilling, and hydraulic fracturing to oil and gas companies. The partnership with 360 Energy allows Halliburton to expand its reach into new, innovative markets.
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According to Spears & Associates, Halliburton is projected to earn $23 billion in revenue in 2024, solidifying its position as the second-largest oilfield service provider behind Schlumberger.
A Trend Towards Monetizing Stranded Gas
The collaboration between Halliburton and 360 Energy validates long-held predictions that the oil and gas industry would eventually partner with Bitcoin miners to monetize stranded gas.
Alfano explained that while Halliburton may be the first major oilfield services company to make such an investment, many large exploration and production gas companies have been selling on-site natural gas to Bitcoin miners for years.
Alfano also noted that leading publicly traded upstream oil and gas companies are increasingly looking to deploy capital into mining infrastructure and hold bitcoin on their balance sheets.
This trend is expected to gain momentum in 2025, driven by factors such as low natural gas prices, regulatory changes, and the broader institutional adoption of bitcoin, particularly through the launch of bitcoin exchange-traded funds (ETFs).
Halliburton’s Vision for the Future
In a statement, Halliburton praised 360 Energy’s innovative In-Field Computing technology. The technology, which captures flared or stranded gas and monetizes it through modular data centres, is seen as a groundbreaking solution for resource owners.
Halliburton’s press release echoed the growing need for alternatives to flaring, a process that often results in the waste of valuable natural gas.
This collaboration between Halliburton and 360 Energy is a game-changer for both the oil and gas and bitcoin mining industries. By leveraging innovative technology to capture and monetize stranded natural gas, the partnership not only addresses environmental concerns but also unlocks new revenue streams for oil and gas companies.
Increased Attention to Bitcoin Mining in 2024
This investment comes amid a surge in institutional interest in Bitcoin mining, with notable companies making headlines for their initiatives. For instance, Jack Dorsey’s Block is planning to double its investments in Bitcoin mining, while cryptocurrency mining firm BitFuFu recently acquired an 80-megawatt Bitcoin mining facility in Ethiopia.
As Bitcoin mining continues to gain traction, the oil and gas sector’s role in powering these operations will only become more crucial.
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