- With the completion of a recent Bitcoin (BTC) mining agreement, Argentina’s state-run energy supplier will be able to power 1,200 ASIC mining rigs in Patagonia with the accompanying gas.
- The transaction involves Fiscal Petroleum Yacimientos (YPF), an Argentine government-owned company, and its YPF Luz branch, according to the Spanish-language media outlet Criptonoticias.
- The agreement also includes Genesis Digital Assets Limited (GDA), a Bitcoin mining company, and Equinor, a Norwegian provider of gas and oil.
A new energy provider in Argentina has signed a deal to mine bitcoins
YPF is the third-biggest oil producer in South America. In Patagonia, it is engaged in multiple exploratory oil drilling projects.
Gas linked with exploratory oil drilling is frequently released. Many oil companies have just burned this off in the past—a practice known as “flaring.”
However, businesses increasingly use thermal facilities in various parts of the world to power crypto mining machines using this gas.
As part of the YPF agreement, the companies will make use of Central Térmica Bajo del Toro, a “mining farm” in Rincón de los Sauces, Neuquén.
After being taken over by the government in 2012, YPF grew to become one of Argentina’s biggest energy corporations.
The companies propose to direct the gas into a thermal power plant that has an 8 MW installed capacity overall.
They asserted that the action will assist commercialize related gas, reduce greenhouse gas emissions, and make effective use of energy.
An Eco-Friendly Resolution?
The initiative, according to YPF, would make use of gas that “would have been vented into the atmosphere otherwise.”
Additionally, the oil company claimed that this would lessen the hazards associated with the “highly energy-intensive” Bitcoin mining sector.
No National First for the Patagonia Project
According to GDA Executive President Abdumalik Mirakhmedov, Argentina is “an important country for Bitcoin mining.”
He claimed that the country was an obvious choice for miners “given its abundance of energy sources and its business-friendly environment.”
About 20 Bitcoin mining farms are owned by GDA, and they are located throughout Central Asia, Europe, and North America. Worldwide, the company manages more than 180,000 mining equipment.
The move was GDA’s first in South America, and Mirakhmedov praised it as “an important step” for the mining company.
Since it started using associated gas to power mining rigs in 2022, YPF, on the other hand, has collaborated with participants in the cryptocurrency mining industry.
Additionally, Equinor declared its intention to integrate cryptocurrency mining activities in 2020 at locations on North Dakota’s Bakken oilfield.
Another Argentine oil exploration, Tecpetrol, revealed intentions in September 2023 to run a cryptocurrency mining “farm” in the Vaca Muerta oil region in Western Argentina.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
