Genesis Digital Assets (GDA), one of the largest Bitcoin mining companies in the world, has announced the opening of a new Bitcoin mining facility in Argentina. GDA is working with YPF Luz, a subsidiary of YPF, Argentina's largest state-owned energy company.
GDA's expansion plans
GDA currently operates 20 industrial-scale data centers in North and South America, Europe and Central Asia with a total capacity of over 500 megawatts (MW) and more than 150,000 ASIC miners. In order to drive forward its geographical diversification, the company has now announced the construction of its first facility in Argentina. The country is well suited for the company's expansion due to its abundant energy sources, climatic conditions, friendly business environment, favorable political and Bitcoin-friendly climate, noted Genesis Digital Assets Chairman and Founder Abdumalik Mirakhmedov.
We are actively looking for other countries in the region to expand into, but currently we are focusing on Argentina because it offers the ideal combination of attractive electricity prices, temperature, development potential and sustainable energy sources.
Abdumalik Mirakhmedov in an interview
GDA's first plant in Argentina is located in Rincón de Los Sauces in the province of Neuquén in the southwest of Argentina. The low-cost power supply for GDA comes from the Bajo de Toro thermal power plant, which was built near oil fields and is operated by the energy companies YPF (and its subsidiary YPF Luz) and Equinor.
It has a total capacity of 7 MW (plus 1 MW reserve capacity) for 1,200 ASIC miners. The electricity is generated from stranded methane gas from the oil fields, which would otherwise be flared and released into the atmosphere.
Less methane emissions
The fact that methane has a negative impact on the environment has already been addressed several times by numerous institutions and organizations, such as the United Nations. There are also several studies on the potential of Bitcoin mining to reduce methane emissions and thus counteract global warming, such as the studies from MIT or from various players in the industry - Blocktrainer reported.
By efficiently utilizing or monetizing the environmentally harmful methane gas, the new Bitcoin mining plant in Argentina offers energy companies compensation for the costs of the plant and ultimately lower regional oil prices. In addition, the project also effectively reduces the direct environmental impact of stranded gas and promotes sustainability without compromising the electricity needed to meet Argentina's domestic demand.
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 requirements. [...] This project with GDA allows us to offer YPF and Equinor, two companies committed to reducing the carbon footprint of their exploration activities, an adaptable and sustainable solution for the use of flare gas.
Martín Mandarano, CEO of YPF Luz, in an interview
This is also another opportunity to show the world that Bitcoin mining can have a positive impact on the environment and be fully integrated into local communities.
Abdumalik Mirakhmedov, GDA
More state Bitcoin mining?
The cooperation between GDA and YPF represents an important step for the further growth of the mining industry in Latin America. Other countries in the region, such as Venezuela or Paraguay, where debates on Bitcoin mining are currently taking place, could take their lead from Argentina and actively pursue state Bitcoin mining themselves.
It is also a prime example of how countries around the world can reduce their carbon footprint to achieve specific climate goals and effectively monetize unused surplus energy, while tapping into a source of the demonstrably scarcest asset and leveraging its monetary properties. Various countries are already increasingly relying on Bitcoin, such as Bhutan, El Salvador, the United Arab Emirates and Oman. Now Argentina is also joining the ranks of countries with their own Bitcoin investments.
The social benefits and the ecological and economic advantages that result from state Bitcoin mining for these countries will certainly not go unnoticed, so that other countries could follow suit. It remains exciting to observe further developments in this area.
