- Union Jack Oil plans to mine Bitcoin using stranded natural gas.
- UK Bitcoin mining lags, but firms are warming to crypto strategies.
- Small-cap companies are adding Bitcoin to boost their valuations.
With its gas stuck underground as it awaits regulators to approve its pipelines, a British drilling company is plotting a pivot to Bitcoin.
Union Jack Oil, a UK- and US-focused onshore energy firm, says it’s exploring a plan to convert stranded natural gas from its West Newton project into electricity to power Bitcoin mining rigs at the wellhead.
The idea is part of a proposed partnership with Texas-based 360 Energy, which specialises in turning low-value or flared gas into crypto.
The concept — known in the industry as gas-to-hash — is already popular in parts of the United States, where oil producers have used it for years to monetise waste gas.
But this would be one of the first serious attempts to bring the model to the UK, where Bitcoin mining is minimal and energy regulations are generally stricter.
The UK currently accounts for less than 0.3% of global Bitcoin hashrate, according to recent estimates. That’s a fraction of what’s seen in the US, which accounts for around 38%. Germany, by comparison, contributes close to 3% despite having similarly high energy costs.
With full-scale development still on hold, Union Jack Oil says Bitcoin mining could offer a way to monetise its gas without waiting on the necessary approvals to build the needed infrastructure to move the gas at its West Newton site.
“Onshore developers have been forced to think outside the box,” Union Jack Oil Chair David Bramhill said in the plan’s announcement. “This concept could offer strong scope for a sustainable return.”
Testing the waters
Union Jack’s plan taps into a quiet trend of UK firms growing more comfortable testing the waters of crypto.
In recent months, a number of small-cap UK companies have unveiled Bitcoin treasury strategies in a bid to boost visibility and valuations.
AI services group Tao Alpha said it plans to raise £100 million to grow its Bitcoin holdings, while The Smarter Web Company saw its market cap explode from £4 million to over £1 billion after revealing a similar pivot.
It’s a familiar playbook, taking cues from players like Strategy and Metaplanet, who have already sunk tens of billions of dollars into their Bitcoin accumulation flywheels. They’re hoping Bitcoin can turn their balance sheet assets into a share price engine, at least while market sentiment stays strong.
At the same time, the UK’s regulatory stance appears to be softening. Former finance minister and now Coinbase representative, George Osborne, recently warned that Britain is in danger of being “completely left behind” on stablecoins, after already missing its crypto moment.
He called on lawmakers to speed up long-stalled digital asset legislation before the pound gets sidelined in the tokenised economy.
The Financial Conduct Authority has also moved to lift its five-year ban on crypto-linked exchange-traded notes for retail investors, with the change set to take effect in October.
Parliament has meanwhile revived its cross-party crypto group, and draft legislation on digital assets is now under active review.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
