Key facts:
The concept of Bitcoin mining from gas surpluses is taking off in Argentina, a country where a farm with a thousand ASIC miners was recently installed to monetize the waste from oil exploration by the state oil company YPF in Patagonia.
The mining farm, which houses 1,200 ASICs, is called Central Térmica Bajo del Toro, located in Rincón de los Sauces, Neuquén, in Argentine Patagonia. There, the data center was born from the association between the local companies YPF and YPF Luz, the Norwegian Equinor and the Bitcoin mining company Genesis Digital Assets Limited (GDA).
YPF (Fiscal Petroleum Yacimientos), which was nationalized by the Argentine government in 2012, leads the development of the Vaca Muerta formation (51% of YPF shares are in the hands of the State), it is one of the most important energy companies from Argentina. And, until now, it is the third largest oil company in South America. It is dedicated to the exploration, exploitation, refining, transportation, marketing and sale of oil, natural gas, electricity and derivatives.
The thermal power plant has an installed capacity of 8 MW in total and is presented as an initiative to reduce greenhouse gas emissions, make efficient use of energy and monetize gas surpluses“which otherwise would have been vented into the atmosphere,” YPF points out in a press release.
They explain that the gas is “reused to generate electrical energy that is destined for a new industry such as Bitcoin mining,” which they describe as “highly energy-intensive.” “But without affecting the availability of the country’s electrical energy network and contributing to a sustainable solution.”
Abdumalik Mirakhmedov, CEO of GDA, the company that runs the mining operations at the plant, believes that Argentina “is an important country for Bitcoin mining” due to the abundance of energy sources and “its business-friendly environment.”
Mirakhmedov revealed that this is the first Bitcoin mining farm they have installed in South America. For them, “it is an important step” in their intention to expand their operations.
GDA has at least 19 Bitcoin mining farms spread across different parts of the world, including North America, Europe and Central Asia. Together they have 500 MW of installed capacity, distributed in more than 180,000 mining rigs.
The executive also valued that these operations will demonstrate that Bitcoin mining “can have a positive effect on the environment and can be fully integrated into local communities.”
It is not the first time that the local company YPF participates in mining activities. Since 2022, this important Argentine company has promoted the use of surplus gas to power Bitcoin mining farms.
Other companies in the sector, such as Tecpetrol, also joined the use of waste gas to start mining Bitcoin. In September 2023, that company reported its plans to install a mining farm in the Vaca Muerta oil field, in western Argentina.
