Argentina to Mine Bitcoin with Stranded Gas

Argentina's energy sector is increasingly turning to Bitcoin, this time with a state-owned facility using stranded natural gas from oil fields that would otherwise be wasted.

JUST IN: ???????? Argentina state-owned company’s subsidiary will mine $BTC with Stranded Gas: Forbes

Eventually, every country will be mining #Bitcoin pic.twitter.com/bu6sCXEUJ1— Bitcoin Magazine (@BitcoinMagazine) May 8, 2024

State-owned energy firm YPF's subsidiary, YPF Luz, recently partnered with Genesis Digital Assets (GDA) to launch a gas flare-powered mining facility. It will harness 1,200 machines to monetize gas currently being flared into the atmosphere.

This comes as Argentina embraces Bitcoin with the election of Bitcoin-friendly President Javier Milei in late 2023.

By repurposing stranded gas that is currently burned as waste, GDA estimates its mining operation could reduce up to 63% of the carbon emissions, which shows how Bitcoin mining can transform energy byproducts into productive use.

GDA founder Abdumalik Mirakhmedov said: "This will be yet another opportunity to show the world that Bitcoin mining can have a positive effect on the environment and can be fully integrated into local communities."

For YPF Luz, monetizing stranded gas offsets costs and drives sustainability. 

For GDA, this means competitive energy pricing and reduced carbon output. For Argentina, it signals leadership in leveraging Bitcoin mining to enhance energy infrastructure.

The news mirrors how other countries are utilizing Bitcoin mining to "clean up" energy grids. Bhutan mines Bitcoin with renewable hydropower to consume its seasonal excess, while El Salvador uses geothermal energy to power mining with no carbon footprint.

Mirakhmedov cited Argentina's energy resources and friendly regulations as ideal conditions for the facility.

As Bitcoin mining expands worldwide, projects like GDA and YPF's showcase a template for reducing stranded gas flaring through productive Bitcoin mining.