Genesis Digital Assets to Mine Bitcoin using Argentina’s Stranded Gas

Bitcoin mining activities are on the rise globally, showcasing the resilience of this highly competitive industry. Despite the fierce competition, the hashrate continues to increase, driving the expansion of operations worldwide. 

A new report from Forbes, shows that Genesis Digital Assets Limited, counted among the largest Bitcoin mining companies globally, is actively contributing to this growth trajectory.

Argentina is set to embark on Bitcoin mining utilizing stranded gas, thanks to a strategic partnership between Genesis Digital Assets Limited (GDA) and YPF Luz, a subsidiary of Argentina’s largest electricity company, YPF. This move underscores the global expansion of Bitcoin mining operations, despite its fiercely competitive landscape.

GDA’s collaboration with YPF Luz will see the establishment of a new Bitcoin mining facility powered by stranded gas. YPF Luz CEO Martín Mandarano revealed that the company has been harnessing electricity from mining activities since 2022, as reported by the local newspaper Ambito.

Located at the Bajo del Toro Thermal Power Plant, operated by YPF Luz, the facility will utilize 1,200 Bitcoin mining machines to monetize stranded gas that would otherwise be released into the atmosphere. This marks GDA’s inaugural mining venture in Latin America, specifically in Rincón de Los Sauces, within Argentina’s Neuquén Province. The facility boasts a total capacity of 7 MW, with an additional 1 MW for backup purposes.

Source: GDA

Abdumalik Mirakhmedov, Executive President of GDA, emphasized the favorable political and pro-innovation climate in Argentina for crypto, particularly Bitcoin. He noted Argentina’s growing adoption of cryptocurrencies and stablecoins as a hedge against high inflation. Mirakhmedov highlighted Bitcoin as a solution to economic challenges, recognized by countries across Central and South America.

“We believe that Argentina is an important country for Bitcoin mining, given its abundance of energy sources and business-friendly environment,” said Mirakhmedov, Executive President of GDA in an announcement. “The opening of our first data center in South America is an important step in our geographic diversification efforts. And 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.”

With GDA utilizing the stranded gas, YPF and Equinor can offset its related costs and contribute to positive environmental changes, which ultimately could result in lower oil prices in the region. GDA, in turn, will access energy sources that are both competitively priced and reduce its global carbon emissions.

“In 2022 we were the first Argentine company to generate electrical energy for cryptocurrency mining from flare gas, an innovative solution in line with YPF’s energy transition needs“ said Martín Mandarano, CEO of YPF Luz. “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.”

This initiative highlights two key aspects of Bitcoin mining’s potential. Firstly, it addresses the environmental impact of stranded gas by repurposing it for mining activities. Secondly, it leverages wasted resources to generate valuable returns through Bitcoin. Importantly, such initiatives are scalable without compromising Argentina’s domestic electricity demand.