Foreman, Cholla Energy Win Crypto Mining Patent Dispute
In a significant development within the energy management and cryptocurrency mining sectors, Lancium LLC has conceded to an inter partes review (IPR) challenge initiated by Cholla Energy LLC and OBM, Inc. (operating as Foreman), leading to the nullification of all 26 claims of U.S. Patent No. 11,016,456 B2.
Background of the Dispute
Lancium's patent, granted in March 2020, described a "method and system for dynamic power delivery to a flexible data center using unutilized energy sources." This technology is pivotal for data centers, including cryptocurrency mining operations, to qualify as Controllable Load Resources (CLRs) under the Electric Reliability Council of Texas (ERCOT) guidelines. CLRs play a crucial role in stabilizing the Texas energy grid by adjusting power consumption in response to grid demands.
OBM and Cholla Energy challenged Lancium's patent, alleging that its enforcement restricted innovation and competition in the energy curtailment market. They argued that allowing Lancium's patent to stand would limit the development of new energy management and cost optimization software, thereby hindering cryptocurrency miners' ability to improve energy efficiency and comply with ERCOT standards.
Outcome and Implications
On March 13, 2025, following the IPR process, Lancium filed a motion for adverse judgment, effectively nullifying all 26 challenged claims of the patent. This outcome is significant as it opens the market for other providers to develop and offer energy management solutions, fostering innovation and competition. It also ensures that cryptocurrency miners and other data center operators have access to diverse technologies to manage energy consumption, comply with regulatory standards, and enhance grid stability.
This outcome opens the market for crypto miners to develop new energy optimization technologies, fostering greater competition and grid flexibility in Texas and beyond. The ruling prevents a single company from monopolizing energy curtailment strategies, ensuring miners can efficiently manage power costs while stabilizing the grid.