Argentina's energy sector is increasingly turning to bitcoin, this time with a state facility that uses natural gas stranded from oil fields that would otherwise go to waste.
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ONLY IN: Subsidiary of Argentine state company will mine twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw”>$btc with braided gas: Forbes
Eventually all countries will be miners. twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin pic.twitter.com/bu6sCXEUJ1
– bitcoin Magazine (@BitcoinMagazine) twitter.com/BitcoinMagazine/status/1788159673817854150?ref_src=twsrc%5Etfw”>May 8, 2024
The subsidiary of the state energy company YPF, YPF Luz, recently partnered with bitcoin-mining-center-in-argentina-powered-with-repurposed-flared-gas/”>Genesis Digital Assets (GDA) to launch a mining facility powered by gas flares. It will take advantage of 1,200 machines to monetize the gas that is currently burned in the atmosphere.
This comes as Argentina embraces bitcoin with the election of bitcoin-supporting President Javier Milei in late 2023.
By reusing stranded gas that is currently burned as waste, GDA estimates that its mining operation could reduce up to 63% of carbon emissions, showing 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 boosts sustainability.
For GDA, this means competitive energy prices and reduced carbon output. For Argentina, it indicates leadership in leveraging bitcoin mining to improve energy infrastructure.
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The news reflects how other countries are using bitcoin mining to “clean up” energy networks. Bhutan mines bitcoin with renewable hydroelectric energy to consume its seasonal surplus, while El Salvador uses geothermal energy to power carbon-free mining.
Mirakhmedov cited Argentina's energy resources and friendly regulations as ideal conditions for the facility.
As bitcoin mining expands around the world, projects like GDA and YPF show a model to reduce the flaring of stranded gas through productive bitcoin mining.
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