UK Gas Firm Faces Pushback Over Plans to Mine Bitcoin

In brief

• Reabold Resources is "exploring the potential" to use its new gas field site to power a Bitcoin mining operation.
• The firm initially received pushback after The Telegraph reported it would mine Bitcoin instead of contributing to U.K. energy needs.
• Shares in the firm, which traded on the London Stock Exchange, jumped more than 7% on Monday.

Reabold Resources, a U.K.-based energy firm with a focus on oil and gas, told investors that it is “exploring the potential” to mine Bitcoin with a small-scale power generation facility in Yorkshire—though its tone softened following initial pushback to the idea.

"A private gas supply means we can run a data center to mine Bitcoin relatively cheaply," Reabold co-CEO Sachin Oza told The Telegraph. "Initially, this would help fund the further development of the gas field and prove the concept—meaning it could become the precursor to a far larger data center."

The firm’s official announcement, made Monday as a “clarification of media article,” differs in tone from the news report from The Telegraph, which suggested the firm would use its West Newton gas field to “mine Bitcoin instead of boosting British energy.” 

“The significant onshore natural gas resource at the West Newton site in Yorkshire has and will continue to be progressed for the benefit of U.K. energy security, which is particularly important at this time of significant geopolitical uncertainty,” the firm wrote in its media clarification.

“In addition, Reabold will continue to engage with all stakeholders, both locally and nationally, to ensure the optimal development pathway for West Newton is achieved,” it added. 

The firm’s statement said it could potentially use the initial flows of gas to power a Bitcoin mining operation, mirroring Oza’s message to The Telegraph. Doing so could showcase the feasibility of using the West Newton gas field for “data center developments that will be crucial to the future U.K. economy,” its statement said. 

“Successful implementation of such a project could allow for the development of a larger-scale data center at site, which would not preclude the potential for gas to grid, or gas to industrial consumption development options,” it wrote. 

The firm’s response follows criticism from anti-fracking leader Lorraine Inglis, who told The Telegraph that “using that gas to power Bitcoin mining is not energy security or any genuine public benefit, but the deliberate burning of fossil fuels for one of the most energy-intensive and socially questionable activities at a time of high bills and missed climate targets.”

Shares in the firm (RBD) were up 7.3% on Monday on the clarification that followed Sunday’s Telegraph report.

The firm’s entry into the Bitcoin mining space would buck the trend that has seen publicly traded Bitcoin miners stray from mining the top crypto asset, instead to provide compute power for artificial intelligence (AI). For example, Bitfarms rebranded to Keel Infrastructure and dumped its Bitcoin business to pursue opportunities in AI energy demand.

Daily Debrief Newsletter