Bitcoin Mining Finds a New Home in Argentina
The world of Bitcoin mining is expanding rapidly, with hashrate growing exponentially and global operations springing up left and right. One of the largest Bitcoin mining companies in the world, Genesis Digital Assets Limited (GDA), is at the forefront of this expansion. In a groundbreaking move, GDA has announced an agreement with YPF Luz, a subsidiary of Argentina’s largest electricity company, YPF, to open a new Bitcoin mining facility that will operate using stranded gas.
Bitcoin mining operations are expanding globally
This new facility, located in the Bajo del Toro Thermal Power Plant, will power 1,200 Bitcoin mining machines to monetize stranded gas that would otherwise be flared into the atmosphere. This is the first time GDA has opened a mining operation in Latin America, specifically in Rincón de Los Sauces, in the Neuquén Province, with a total capacity of 7 MW and 1 MW backup.
“Although we’ve been considering expanding to Argentina for years, the political and pro-innovation climate the country has fostered for crypto – and Bitcoin specifically – has never been stronger than today.” - Abdumalik Mirakhmedov, Executive President of GDA
The new facility showcases two important elements of Bitcoin mining’s potential. On one hand, it helps mitigate the direct impact of stranded gas on the environment. However, other mitigation techniques don’t include the second element: using these wasted resources to make some valuable return, in this case, through BTC.
Stranded gas is a major environmental concern
While Latin America has not traditionally been a major hub for Bitcoin mining, GDA’s new facility in Argentina signals an important shift. Paraguay, Venezuela, and now Argentina could lead the charge. The company sees Argentina as an ideal starting point for its regional expansion, citing the country’s favorable combination of characteristics.
“We are actively looking for more countries in the region to expand to, but we are currently focused on Argentina because it provides the ideal combination of attractive electricity prices, temperature, potential for development, and sustainable energy sources.” - Abdumalik Mirakhmedov
Since Javier Milei took power in late 2023, Argentina’s Bitcoin and crypto industry have been on the move. The public sector is trying to regulate the activity to further comply with the Financial Action Task Force recommendations and the International Monetary Fund requirements, while companies, startups, and users are looking for ways to maintain the growing adoption.
Bitcoin adoption is on the rise in Argentina
It’s unclear how this regulatory issue will be fixed, but GDA’s announcement underscores the importance this country might have for the industry, especially for Bitcoin miners.
A glimpse into a Bitcoin mining facility
The future of Bitcoin mining is looking bright, and Argentina is poised to be at the forefront of this revolution. As the industry continues to grow and expand, one thing is certain – the world of Bitcoin mining will never be the same again.
