Genesis Digital Assets Limited (GDA), a prominent figure in the global Bitcoin mining arena, has forged a strategic alliance with YPF Luz, a subsidiary of Argentina’s state-owned energy company YPF. Together, the two entities have inaugurated a groundbreaking Bitcoin mining facility in Rincón de Los Sauces, located in the Neuquén province, capitalizing on an unconventional energy resource – stranded gas derived from oil fields.

The avant-garde facility is specifically engineered to convert what would typically be considered as waste into a potent energy source for the high-intensity computing processes associated with Bitcoin mining. With a total power capacity of 7 megawatts (MW), supported by an additional 1 MW of backup power, and housing 1,200 Bitcoin mining machines, the facility is powered by the Bajo del Toro Thermal Power Plant, jointly managed by YPF, Equinor, and YPF Luz.

At the core of this enterprise is the innovative use of stranded gas, which is the natural gas liberated during oil extraction but not captured for commercial purposes due to economic constraints in transportation or remote or marginally productive fields. Typically, stranded gas is disposed of through flaring into the atmosphere, significantly contributing to greenhouse gas emissions. The new facility’s approach not only averts environmental harm but also utilizes the gas to generate electricity, effectively repurposing a previously wasted resource.

This approach holds immense promise in mitigating environmental impact. The repurposing of methane through techniques like those employed by GDA can substantially reduce carbon dioxide equivalent (CO2e) emissions by between 25% and 63%, as indicated by recent studies, including one from MIT. This is particularly crucial in addressing methane’s status as a potent greenhouse gas, currently responsible for approximately one-third of global warming.

Abdumalik Mirakhmedov, Executive President and Founder of GDA, underscored the environmental and operational advantages of the project, expressing, “The opening of our first data center in South America marks a significant step in our geographic diversification efforts. This project will serve as an opportunity to showcase the positive environmental impact of Bitcoin mining and its seamless integration into local communities.”

The implications of this collaboration extend beyond environmental benefits. Argentina boasts substantial energy resources, a favorable political climate, and a robust crypto ethos among its populace. The nation, plagued by high inflation rates, has witnessed a surge in the use of cryptocurrencies as a hedge against economic instability.

Furthermore, the project stands as a substantial milestone for GDA, with its diverse portfolio of 20 industrial-scale data centers spanning North America, South America, Europe, and Central Asia, solidifying its position as a key player in the Bitcoin mining industry. With a total power capacity exceeding 500 MW globally, GDA is at the forefront of driving innovation through the integration of renewable and waste-derived energy sources into the BTC mining sector.

In addition to the local impact, the project aligns with Argentina’s energy policies and emphasizes a sustainable solution for the use of flare gas. Martín Mandarano, CEO of YPF Luz, emphasized the strategic fit of the project with the company’s vision for reducing the carbon footprint of their exploration activities and positioning them as pioneers in innovative energy solutions.

At the time of writing, BTC traded at $62,406, signifying the robustness and relevance of Bitcoin in the current financial landscape.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.