Iron Bridge becomes first Canadian energy company to cash in on cryptocurrency, but analysts drop the stock

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A cryptocurrency mining facility. Iron Bridge plans to burn AECO gas and produce electricity and use that electricity to power computer hardware mining cryptocurrency tokens.Akos Stiller/Bloomberg

CALGARY – With natural gas prices expected to remain stubbornly low, one Alberta producer has come up with a novel way to boost its bottom line: using its gas stream to power computer servers that will mine potentially lucrative cryptocurrencies such as Bitcoin.

Iron Bridge Resources Ltd. announced it would form a new subsidiary called Iron Bridge Technology in an attempt to join the cryptocurrency and blockchain craze – but also to arbitrage the difference between the value of Bitcoin, currently valued at US$11,188 per coin, and AECO gas, currently valued at $1.98 per thousand cubic feet.

“It was driving me insane to be handing off – from pretty much October onwards – our gas for next to nothing,” Iron Bridge CEO Rob Colcleugh said.

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