Genesis Digital Assets Limited (GDA), a major player in the Bitcoin mining industry, has unveiled plans for a new mining operating center in Argentina using flared gas.
The move marks the company’s solid entry into South America, which currently boasts a network of 20 industrial-scale data centers spread across North America, South America, Europe, and Central Asia.
As per the official press release, the new facility, located in Rincón de Los Sauces, Neuquén province, will be powered by the leading electric power generation company in Argentina, YPF Luz.
Genesis Digital Assets Mining Using Flared Gas
With a total capacity of 7 MW and 1 MW of backup, the data center will utilize electricity generated from stranded gas provided by YPF Luz, effectively converting gas that would otherwise be flared, into electricity to power Bitcoin mining operations.
Gas flaring, a byproduct of oil extraction, burns excess methane releases and wastes energy, contributing significantly to global warming. Notably, according to the Intergovernmental Panel on Climate Change (IPCC), methane is responsible for around a third of the warming the world is experiencing.
By repurposing stranded gas for Bitcoin mining, Genesis Digital Assets aims to mitigate these environmental impacts. Abdumalik Mirakhmedov, the company’s Executive President, sees the opening of the South American data center as a significant step in his company’s geographic diversification efforts. He states:
“This will be yet another opportunity to show the world that Bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities.”
The partnership between GDA and YPF Luz not only benefits the environment but also has economic implications. By utilizing stranded gas, YPF Luz and its partners can offset related costs while contributing to environmental sustainability.
This could potentially lead to lower oil prices in the region. Martín Mandarano, CEO of YPF Luz, highlighted the importance of the project in YPF’s energy transition efforts, stating:
“This project with GDA allows us to bring YPF and Equinor, two companies committed to reducing the carbon footprint of their exploration activities, an adaptable and sustainable flare gas use solution.”
Given its abundance of energy sources and bitcoin-friendly environment, Argentina is a very favorable country for Bitcoin mining. In addition to Genesis Digital Assets, other Bitcoin miners are also exploring sustainable solutions for their operations in the country.
Giga Energy, a Texas-based Bitcoin miner, also recently announced its expansion into Argentina to utilize wasted energy from natural gas flaring in the country’s oil fields.
During the announcement in March, Brent Whitehead, co-founder of Giga Energy, described the move as a significant milestone for the company and aligned with its vision to mitigate flaring globally.
The adoption of sustainable practices in Bitcoin mining reflects a broader trend within the industry. As concerns about the environmental impact of Bitcoin mining continue to grow, companies are increasingly turning to renewable energy sources and innovative solutions to reduce their carbon footprint.
By repurposing stranded gas for electricity generation, Genesis Digital Assets and its partners are leading the way towards a more sustainable future for Bitcoin mining.
