The American mining firm Genesis Digital Assets (GDA) has established a data centre in Argentina to mine the leading cryptocurrency using energy derived from burning associated gas.
Initially, the local partner, energy company YPF.Luz, will power 1,200 ASIC miners from a thermal power plant operating on flared gas.
The facility boasts a capacity of 7 MW with a 1 MW reserve. It is located in Rincon de Los Sauces, Neuquén province.
The company highlighted that the project contributes to reducing methane emissions from Bitcoin mining, as burning associated gas significantly diminishes its greenhouse effect. GDA aims to collaborate with YPF.Luz and extraction company Equinor to “contribute to positive environmental changes.”
According to a statement, GDA is in the process of market expansion and, at the time of writing, operates 20 data centres across North and South America, Europe, and Central Asia.
In August 2023, the firm expanded its Bitcoin mining capacity in Sweden with the launch of an 8 MW facility.
In 2021, GDA entered into a strategic partnership with miner manufacturer Canaan, which includes an option to purchase 200,000 devices.
“We believe Argentina is an important country for Bitcoin mining, given its abundant energy resources and favourable business environment. Opening our first data centre in South America is a significant step towards geographical diversification. It is also an opportunity to demonstrate that mining can positively impact the environment,” stated GDA’s Executive Chairman Abdumalik Mirakhmedov.
In March 2024, the American firm Giga Energy launched a pilot project for Bitcoin mining using flared gas energy in Mendoza province, Argentina.
The Texas firm’s approach mirrors the strategy of fellow Texans Crusoe Energy, which deploys containerised installations near oil rigs.
In December 2023, Crusoe invested in the startup Unblock Global, which began Bitcoin mining in Argentina using flared gas at the same Vaca Muerta field in Mendoza.
Following the November elections, Javier Milei, a proponent of the leading cryptocurrency, became the country’s president.
Unexpected Consequences of Mining Boom in Neighbouring Paraguay
In February 2023, experts from Hashrate Index concluded that Paraguay, bordering Argentina to the north, is becoming a significant Bitcoin mining hub.
A major factor is the Itaipu Dam, the world’s second-largest hydroelectric power plant, which more than meets the country’s energy needs.
Given the attractive conditions, American companies like Sazmining and Marathon Digital, the largest publicly traded miner, have opened data centres in Paraguay.
However, in April 2024, a group of senators introduced a bill in Congress to suspend cryptocurrency mining activities for 180 days or more, depending on conditions. Lawmakers were concerned about losses from electricity theft by illegal miners and power supply disruptions caused by industry participants.
According to Hashlabs Mining co-founder Jaran Mellerud, the bill’s passage would result in over $200 million in lost revenue for the country annually.
As a result, the Senate suspended consideration of the bill, focusing on the financial implications. Politicians decided to hold public hearings to assess the advantages and disadvantages of mining development in the country.
One of the Bitcoin mining enterprises in Paraguay, as part of efforts to improve environmental practices, directed the heat generated during the process towards producing dried mango.
Eco-Friendly Mining Ideas Gain Momentum
Bitcoin miners are finding diverse ways to utilise the heat generated by their equipment. A bathhouse in New York, for instance, used it to maintain pool water temperature. However, when clients learned about it, their reactions were mixed.
In the Norwegian town of Sortland, KryptoVault organised the drying of wood and seaweed using mining heat. Despite creating jobs, residents opposed the miners due to the noise generated by the data centre.
Marathon launched a pilot project in the US to mine Bitcoin using landfill gas energy.
Greenidge Generation in Dresden, New York, utilises waste from an old coal power plant for cryptocurrency mining.
As reported, a division of the payment giant PayPal announced an initiative to encourage “green” digital asset mining.