LandBridge, a United States firm that acquires large swaths of land for oil and gas production, says it intends to court crypto miners as part of its future strategy — amid the launch of its initial public offering (IPO) on Monday.

The company said on June 17 that it’s offering 14.5 million shares, which it anticipates will be priced between $19 and $22, potentially giving it a valuation of up to $1.6 billion. It plans to be listed on the NYSE under the ticker “LB.”

Regulatory filings show LandBridge owns around 220,000 surface acres in and around the oil and natural gas-rich Delaware subbasin in the Permian Basin area of Texas and New Mexico.

LandBridge suggested its land could serve more than just oil and gas producers. Crypto miners and data centers could also benefit from access to water, roads, fiber optic infrastructure and power — and the firm could make big money billing them for it.

“We have identified and are currently pursuing opportunities to receive surface use payments from crypto currency mining, data centers, power storage facilities and commercial fueling stations."

LandBridge said it already has one “crypto currency facility” using its land. In 2023 it earned $52.1 million from non-oil and gas-related royalty revenue — which includes crypto miners — a 56% year-on-year bump.

“We would not own or operate such projects or expect to incur significant capital expenditures in connection therewith,” it added.

LandBridge would, however, expect to “receive surface use fees and other payments in connection with the utilization of our land,” including fees for water it supplies to crypto miners to keep their rigs running cool.

Related: CleanSpark acquires 5 mining facilities in Georgia

Its land is well-positioned to woo crypto miners who have flocked to Texas for its cheap power and cozy regulatory framework.

But the state’s lawmakers are turning on the power-hungry crypto miners and artificial intelligence data centers.

Local media reported earlier this week that crypto and AI demand is putting strain on Texas’ power grid, according to the head of the organization that runs it — ERCOT boss Pablo Vegas.

“We need to take a close look at those two industries,” Texas Lieutenant Governor Dan Patrick wrote to X on June 12. “They produce very few jobs compared to the incredible demands they place on our grid.”

Magazine — ‘Bitcoin Layer 2s’ aren’t really L2s at all: Here’s why that matters