rewrite this content
Union Jack Oil (UJO), a UK-listed oil and gas firm, is exploring a new path to monetize its gas resources by turning to Bitcoin mining, per an Aug. 7 statement.
According to the firm, the move is focused on harnessing the natural gas from its West Newton site in East Yorkshire to generate electricity for powering crypto mining operations.
Why Bitcoin mining?
Union Jack’s Executive Chairman, David Bramhill, expressed confidence in the project’s potential, noting that the Bitcoin mining strategy could lead to the creation of a new Bitcoin Treasury strategy for the oil and gas company.
To achieve this, the firm stated that Rathlin Energy and its joint venture partners, including Reabold Resources, have signed a non-binding letter of intent (LOI) with 360 Energy, a Texas-based firm specializing in natural gas monetization.
The agreement outlines a strategy to install gas-powered electricity infrastructure and Bitcoin mining units directly at the production site.
The initiative aims to use gas from the West Newton A and B wells to power onsite data centers. Speaking about these centers, Bramhill said:
“We continue to believe that this asset holds material value which could eventually deliver significant volumes of onshore low-carbon sales gas into the UK`s important domestic natural gas market. West Newton is estimated to contain gross recoverable 2C gas resources of almost 200 billion cubic feet, according to an independent assessment undertaken by RPS in 2022.”
These centers will run 360 Energy’s “In-Field Computing” (IFC) system, designed to convert raw gas into electricity for crypto mining.
According to Union Jack, early production concepts like this allow them to unlock value from existing wells without waiting for full field development. If successful, the model could be replicated at other nearby discoveries.
Mining difficulty surging
Union Jack’s Bitcoin mining plans come at an interesting time when Bitcoin mining difficulty is rising.
According to data from Cloverpool, Bitcoin mining difficulty is expected to surge to an all-time high of over 130 trillion on Aug. 9.
Despite this milestone, the broader growth in mining activity appears to be decelerating.
According to insights from Blockware, the year-to-date increase in mining difficulty stands at just 16%. If this pace holds, 2025 could register as the slowest year of mining difficulty growth in Bitcoin’s history.
The slowdown is primarily attributed to maturing hardware capabilities, infrastructure limitations, and the growing interest of data center operators in alternative sectors like artificial intelligence.
Blockware suggested that this deceleration in mining difficulty is ultimately bullish for Bitcoin miners, as it translates into less competition for the daily 450 BTC mined.
in well organized HTML format with all tags properly closed. Create appropriate headings and subheadings to organize the content. Ensure the rewritten content is approximately 1500 words. Do not include the title and images. please do not add any introductory text in start and any Note in the end explaining about what you have done or how you done it .i am directly publishing the output as article so please only give me rewritten content. At the end of the content, include a “Conclusion” section and a well-formatted “FAQs” section.
