Genesis Digital Assets Limited (GDA), a prominent figure in global Bitcoin mining, has teamed up with YPF Luz, a subsidiary of Argentina’s state-owned energy firm YPF, to establish a unique Bitcoin mining site. This facility utilizes stranded gas extracted during oil drilling, typically discarded for economic and logistical reasons.
Located in Rincón de Los Sauces, Neuquén Province, this initiative transforms what is traditionally seen as waste into a valuable energy resource. Operating within the Bajo del Toro Thermal Power Plant, managed jointly by YPF, Norwegian giant Equinor, and YPF Luz, the site boasts a power capacity of 7 megawatts (MW), with an additional 1 MW backup, supporting 1,200 Bitcoin mining machines. By harnessing stranded gas for electricity generation, the facility mitigates potential environmental harm associated with gas flaring.
Studies, such as a recent MIT working paper, indicate that utilizing methane in this manner can reduce carbon emissions by 25% to 63%, a significant contribution to combating global warming. Methane, a potent greenhouse gas, poses a considerable environmental threat, making its reduction imperative.
Abdumalik Mirakhmedov, GDA’s founder, emphasizes the ecological benefits of the facility and its role in fostering community engagement. Argentina provides fertile ground for such endeavors, given its abundant energy resources, supportive governmental policies, and a populace increasingly embracing cryptocurrency amidst inflationary pressures.
This project aligns with national energy strategies and underscores YPF Luz’s leadership in converting flare gas into cryptocurrency mining energy, a feat initially accomplished in 2022. Expanding GDA’s global reach, the operation adds to their network of 20 data centers across multiple continents, boasting a combined power capacity exceeding 500 MW. Their ongoing initiatives underscore the integration of sustainable and underutilized energy sources into the Bitcoin mining sector, solidifying their position as industry pioneers and innovators.
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