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Argentina Harnesses Waste Gas for Bitcoin Mining

Argentina Harnesses Waste Gas for Bitcoin Mining

Apr 6, 2024
Bitcoin Mining

Argentina Harnesses Waste Gas for Bitcoin Mining

Giga Energy, a company that specializes in converting waste gas into energy for Bitcoin mining, has announced its expansion into Argentina. The move aims to capitalize on the vast energy potential of the country's Vaca Muerta shale gas reserve, which is the world's second-largest.

Argentina's ongoing economic crisis, marked by hyperinflation and financial instability, has prompted President Javier Milei's administration to adopt a favorable stance towards Bitcoin. It is increasingly viewed as a viable hedge in the face of the country's economic challenges.

The collaboration between Giga Energy and local oil and gas firms represents a mutually beneficial arrangement. It promises to mitigate emissions while simultaneously introducing a novel revenue channel for Argentina's economy, which is currently grappling with challenges.

The use of this waste gas to power Bitcoin mining operations has been gaining traction as an alternative to flaring, with Giga Energy implementing this approach in East Texas as early as 2019.

Giga Energy is now set to replicate its successful model in Argentina, where it plans to develop a 2 MW project in partnership with Phoenix Global Resources and Exa Tech. The initiative is expected to launch on a smaller scale before scaling up. Excess power generated could also be supplied to the Argentinian grid.

Argentina's President Milei has indicated a commitment to integrating Bitcoin into the country's financial system, including recognizing Bitcoin for contract settlements. This openness to Bitcoin has the potential to set a precedent for other countries in the region.

Bitcoin's value has surged by 170 percent over the past six months, reaching record highs. Giga Energy has reported revenues exceeding $10 million in the current quarter, as per co-founder Matt Lohstroh.

The entry of Giga into Argentina is part of a broader trend, with the nation positioned as a prime location for Bitcoin mining operations due to its shale reserves. Under the leadership of a pro-Bitcoin president, Argentina appears set to welcome an influx of Bitcoin companies looking to establish a presence in the oil and gas sector.

Originally reported by OilPrice


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