Genesis Digital Assets, a prominent player in the digital mining industry, has formed a strategic partnership with YPF Luz, a leading power company in Argentina. This alliance aims to harness power from a flare gas installation to fuel a bitcoin mining site in the country. The mining facility, located within the Bajo del Toro thermoelectric plant, will house a staggering 1,200 bitcoin miners.
In an effort to adopt more sustainable energy sources, bitcoin mining companies are actively seeking environmentally friendly solutions to power their operations. Genesis Digital Assets, recognizing this need, has unveiled its collaboration with YPF Luz to establish a bitcoin mining site powered entirely by electricity generated from flare gas in Argentina.
The Bajo del Toro plant, a recently constructed thermoelectric facility, will supply power to Genesis Digital Assets’ bitcoin mining data center, which will be situated within the plant. The facility is expected to accommodate 1,200 miners. Prior to this partnership, YPF Luz conducted a pilot project to assess the feasibility of this agreement.
The Bajo del Toro plant generates its 8-megawatt capacity using flare gas, a byproduct of oil exploration that is typically underutilized. This is primarily due to the logistical challenges posed by the distance between oil facilities and processing centers, making it economically unviable to construct the necessary infrastructure for gas transportation.
By utilizing this otherwise wasted gas, both companies are making significant strides in monetizing the resource and reducing emissions through their partnership. Martin Mandarano, CEO of YPF Luz, emphasized the positive environmental impact of this project, stating that it enables the company to “reduce the carbon footprint of its exploration activities” by employing “an adaptable and sustainable flare gas use solution.”
Abdumalik Mirakhmedov, the founder of Genesis Digital Assets, highlighted Argentina’s relevance in the field of bitcoin mining, citing its abundant energy sources and favorable business environment. He expressed his belief that this venture will showcase how bitcoin mining can positively impact the environment and seamlessly integrate into local communities.
Similar initiatives have already been undertaken in Argentina. In February, Tecpetrol, an oil and gas company based in the country, reported a fivefold increase in production after incorporating vented gas cryptocurrency mining into its operations portfolio.
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