Upstream Data Sues Crusoe Energy Over Waste Gas Mining Patent

Upstream Data, a Canadian natural gas bitcoin miner, has filed a lawsuit against Crusoe Energy, alleging patent infringement, according to court documents. The lawsuit claims that Crusoe’s technology infringes on the patent held by Upstream Data founder Stephen Barbour, and that Crusoe knowingly developed the technology despite being aware of the infringement. Upstream Data is seeking damages and requesting that the court order Crusoe to cease the alleged intellectual property violation.

Crusoe has acknowledged the complaint and stated that it intends to vigorously defend itself. The company spokesperson expressed confidence in Crusoe’s own intellectual property, which includes five issued patents.

According to the lawsuit, Stephen Barbour applied for a patent related to natural gas bitcoin mining in February 2017, the same year he founded Upstream Data. The patent was granted on February 7, 2023. The complaint from Upstream Data asserts that Crusoe is a follower in the field and developed its products years after Barbour’s innovations.

Both Upstream Data and Crusoe Energy are involved in bitcoin mining using excess natural gas from oil wells. Rather than releasing the gas into the atmosphere through flaring, which contributes to greenhouse gas emissions, these companies utilize the excess gas to power generators for bitcoin mining, thereby extracting energy from the gas and reducing emissions.