Bitrabo Editorial
Genesis Digital Assets Limited (GDA) and YPF Luz, a subsidiary of the Argentine state-owned energy company YPF, have joined forces to establish a new Bitcoin mining facility in Rincón de Los Sauces, Neuquén province. The facility harnesses stranded gas from oil fields to power the energy-intensive computing processes required for Bitcoin mining.
Innovative Energy Solution
The facility has a total power capacity of 7 megawatts (MW) with an additional 1 MW backup power, accommodating 1,200 Bitcoin mining machines. It is powered by the Bajo del Toro Thermal Power Plant, operated by YPF, Equinor, and YPF Luz. Stranded gas, a byproduct of oil extraction, is utilized for energy generation instead of being wasted through flaring, reducing greenhouse gas emissions.
The conversion of stranded gas into electricity at the facility is estimated to reduce carbon dioxide equivalent (CO2e) emissions by 25% to 63%, based on studies such as a MIT working paper. Methane, a potent greenhouse gas, contributes significantly to global warming, making this initiative crucial for environmental sustainability.
GDA’s Executive President and Founder, Abdumalik Mirakhmedov, highlighted the environmental benefits of the project, stating that Bitcoin mining can positively impact the environment while integrating into local communities.
Strategic Outlook
Argentina’s abundant energy resources, supportive political environment, and growing crypto adoption make it an ideal setting for such initiatives. With rising inflation rates driving interest in cryptocurrencies as a hedge, projects like this one align with the country’s energy goals and commitment to sustainability.
YPF Luz CEO, Martín Mandarano, emphasized the project’s synergy with reducing carbon footprints and the company’s previous work in electricity generation for cryptocurrency mining from flare gas. This collaboration positions YPF Luz as a pioneer in sustainable energy solutions.
For GDA, this venture signifies expansion into Argentina, adding to its global presence with 20 data centers across various regions. With a total power capacity exceeding 500 MW, GDA continues to lead innovation by incorporating renewable and waste-derived energy sources into Bitcoin mining operations.
Bitcoin’s current trading price is $62,406.