AXP Energy has signed a binding heads of agreement (HOA) with cryptocurrency mining company Elite Mining to provide gas to the latter’s in-situ power generation for the cryptocurrency mining sector in the US.

As per the agreement, AXP Energy will be provide stranded gas from its Pathfinder field in Colorado, all associated gas gathering infrastructure in addition to site control and maintenance services from its site office located in Florence.

Elite Mining is engaged in providing mining hardware to third parties for mining digital currencies by using its immersion technology. The hardware, or miners, are submerged in the company’s liquid-cooled immersion mining pods, which are put within a 28-foot Elite Mobile Unit (EMU) for optimizing performance and considerably enhancing energy efficiency.

AXP Energy and Elite Mining are said to have made significant progress in deploying the first mining unit at the Pathfinder field.

The initial gas supply is at a minimum of 400 mcf/day, said AXP Energy, which expects to get larger and more immediate financial benefit from the oil that can now be produced from the Pathfinder and Vespucci wells, that are presently shut-in because of gas flaring restrictions.

Although AXP Energy and Elite Mining are focusing initially on the Pathfinder field, the parties are also evaluating opportunities to use stranded gas sources across the former’s leases in the Illinois and Appalachian Basins.

Simon Johnson – AXP Energy Chairman said: “AXP’s focus is on growing and enhancing its revenue streams across its portfolio and this HOA with EMI is another example of this. It also demonstrates how our US operations team is smartly and tactically capitalizing on growth sectors such energy supply for the cryptocurrency mining sector.

“This is a unique opportunity yet consistent with our operations as a growing and innovative energy business.

“We stress that this first deployment is deliberately small-scale and just the first step. We expect revenue to track up as more mining units are installed.”

  AXP Energy, cryptocurrency, cryptocurrency mining, Elite Mining, Pathfinder field, Simon Johnson, USA