Regulatory Delays Push AXP to Seek Faster US Sites for Gas-to-Power Growth
AXP Energy has launched its first gas-to-power bitcoin mining operation at its Pathfinder field in Colorado, producing hydrocarbons from a new formation and planning rapid US expansion.
- Pathfinder #1 well begins hydrocarbon production from Greenhorn Formation
- Gas supply powers 530 ASIC bitcoin miners generating 1.5 MW and 0.8 BTC monthly
- Three wells deliver ~260 Mcf/day gas to two generators at first site
- Plans to scale power generation to 25 MW by year-end via new US jurisdictions
- Regulatory delays in Colorado prompt exploration of faster permitting states
Milestone Production at Pathfinder
AXP Energy Limited has reached a significant operational milestone with the Pathfinder #1 well in Colorado now producing hydrocarbons from the Greenhorn Formation for the first time in the Florence leases. This breakthrough marks a new chapter for the company, which has been focused on repurposing stranded natural gas to power high-performance computing operations, including bitcoin mining.
The well’s initial production included frac fluid and 60 barrels of oil in the first week, but more notably, it is now delivering natural gas at a rate of approximately 260 Mcf per day. This gas feeds into the existing gathering system alongside Pathfinder #2 and Vespucci wells, powering two generators that supply electricity to around 530 ASIC bitcoin miners operated by BitFuFu, Inc.
Proof of Concept for Off-Grid Gas-to-Power Mining
The current setup generates about 1.5 megawatts of power, enabling the mining operation to produce roughly 0.8 bitcoin per month. This successful integration of gas production with bitcoin mining validates AXP’s innovative off-grid energy model. By leveraging remote locations and satellite internet connectivity, the company has demonstrated that gas-to-power bitcoin mining can be scaled and replicated across multiple sites.
AXP’s Managing Director, Dan Lanskey, emphasized the strategic importance of this achievement, noting the company’s ambition to rapidly expand power generation capacity to 25 megawatts by the end of the year. However, regulatory hurdles in Colorado, where permit lead times for new wells can stretch from nine to twelve months, have prompted the company to explore alternative US states with more favorable and expedited permitting processes.
Strategic Expansion and Market Positioning
AXP is actively assessing new jurisdictions to accelerate deployment and meet the growing demand from high-performance computing sectors, including AI and rendering services. The company’s partnership with BitFuFu, a Nasdaq-listed bitcoin mining hardware supplier, positions it well to capitalize on the expanding off-grid energy market for crypto mining.
With 24 operating wells at Pathfinder and a proven operational model, AXP is poised to become a reliable energy partner in the niche but rapidly growing intersection of oil and gas production and blockchain technology. The upcoming announcements of new sites in energy-friendly US states will be critical to watch as the company seeks to scale its operations swiftly.
Bottom Line?
AXP’s Pathfinder success sets the stage for rapid US expansion, but regulatory hurdles remain a key challenge.
Questions in the middle?
- Which US states offer the fastest permitting for new gas-to-power sites?
- How sustainable and scalable is the gas supply from the Greenhorn Formation over time?
- What are the financial implications of scaling from 1.5 MW to 25 MW in power generation?
