Argentina Launches Innovative Bitcoin Mining Project Using Stranded Gas

Genesis Digital Assets Limited (GDA), a leader in global Bitcoin mining, has partnered with YPF Luz, part of Argentina’s state-owned energy firm YPF, to create a unique Bitcoin mining site. This facility harnesses stranded gas from oil fields—gas released during oil drilling but not used for economic and logistic reasons.

Situated in Rincón de Los Sauces, Neuquén Province, this initiative stands out for converting what is usually considered waste into a valuable energy source. The site operates within the Bajo del Toro Thermal Power Plant, managed by YPF, Norwegian giant Equinor, and YPF Luz.

It has a power capacity of 7 megawatts (MW), with an additional 1 MW backup, supporting 1,200 Bitcoin mining machines. Stranded gas, often flared and released into the atmosphere as waste, is instead used here to generate electricity for mining, reducing potential environmental damage.

Studies, like a recent MIT working paper, show that using methane this way can decrease carbon emissions by 25% to 63%. Methane significantly contributes to global warming, and its reduction is a crucial environmental goal.

Abdumalik Mirakhmedov, GDA’s founder, stated that the facility showcases the ecological benefits of Bitcoin mining and promotes community integration. Argentina is a fertile ground for such ventures due to its vast energy resources, favorable government stance, and a population increasingly turning to cryptocurrency in response to inflation.

This project aligns with national energy policies and emphasizes YPF Luz’s role as a trailblazer in converting flare gas into cryptocurrency mining energy, initially achieved in 2022. This operation expands GDA’s global footprint, which includes 20 data centers across multiple continents with a combined power capacity of over 500 MW. Their ongoing efforts highlight the integration of sustainable and wasted energy sources into the Bitcoin mining industry, reinforcing their status as industry leaders and innovators.