Arctic Ambition: Startup Bets on Alaska’s Stranded Gas for Mega Bitcoin Mine
Stax Capital plans Alaska's first major Bitcoin mine, aiming to use stranded gas to power a 50MW Arctic facility.
A bold experiment is taking shape in one of the most remote corners of the United States. Stax Capital Partners, a Wasilla-based startup, is seeking to establish Alaska’s first major Bitcoin mining operation, powered entirely by the vast but unused natural gas reserves of the North Slope. If successful, the venture could not only reshape the narrative around stranded energy assets, but also place Alaska on the map as a major player in the digital economy.
The pilot project would deploy shipping container-style units filled with generators and mining rigs on a site near the Franklin Bluffs, 30 miles south of Prudhoe Bay. These gas-fired generators would produce 50 megawatts of electricity—roughly equivalent to the state’s largest coal plant. While the company has yet to lock in a gas supplier, conversations with potential vendors are underway.
Sparrow Mahoney, Stax’s CEO, describes the initiative as a model for sustainable, large-scale crypto mining uniquely suited to Alaska’s geography and energy resources. “This is the only place this makes sense, long term, for the industry,” she argued. By tapping into natural gas that would otherwise remain unused—or be reinjected underground—the project seeks to turn waste into value.
However, this model faces serious logistical and environmental questions. The North Slope’s isolation and high construction costs have historically hindered industrial development. energy experts caution that repurposing stranded gas for Bitcoin may undermine broader climate goals by promoting fossil fuel consumption in a region already sensitive to climate change.
“It just gets into this really problematic situation where, suddenly, we are burning gas that we wouldn’t otherwise burn,” warned Phil Wight, an energy historian at the University of Alaska Fairbanks. “And we are not executing an energy transition.”
Mahoney counters that no new drilling is required, and that the 30-mile buffer from Prudhoe Bay helps mitigate local air pollution concerns. She insists the project represents a path forward for monetizing state-owned resources that currently generate no revenue. Indeed, the state of Alaska would collect royalties—at least 12.5%—on any gas used by Stax from state leases.
With backing from Anchorage-based McKinley Alaska Private Investment and advisors including Brian Murkowski, brother of U.S. Senator Lisa Murkowski, the company plans to break ground before the end of 2025. If the 50MW pilot proves successful, Stax envisions scaling to a gigawatt of generation—enough to rival the largest Bitcoin mines in the world.
Yet with its promise of jobs, royalties, and innovation, the project walks a tightrope between economic development and environmental stewardship. Whether it will ignite a new industry—or new controversy—remains to be seen.
