Reputable Bitcoin Miner Will Establish New Base In Argentina

The Texas-based Bitcoin miner, Giga Energy, has expanded its operations into Argentina, aiming to utilize excess energy via natural gas flaring in the local oil fields. According to Giga co-founder Brent Whitehead, this expansion marks a significant milestone for the firm, broadening its operational scope and aligning with its vision to address flaring globally.

Slow And Steady

The new mining site in Argentina, situated in the province of Mendoza, has been undergoing testing since December and has already mined a substantial amount of Bitcoin. The pro-Bitcoin stance of the Argentinian President, Javier Milei, has also helped matters. However, the firm is still awaiting the import of necessary equipment before fully scaling up the operation.

Gas flaring, associated with oil extraction, releases methane, which Giga converts into electricity to power its Bitcoin mining equipment. Giga initiated its Bitcoin mining operations in 2019 and currently has 150 megawatts of container capacity installed in its Texas and Shanghai facilities. The expansion involves placing a large shipping container housing thousands of Bitcoin miners atop an oil well, redirecting excess gas into generators, and utilizing that energy for Bitcoin mining.

A New World For BTC Mining

Argentina possesses the second largest shale gas reserve in the world, contributing to the viability of this venture by Giga. Additionally, the Bitcoin mining operation will reportedly help reduce methane emissions, contributing to environmental sustainability. Exa Tech, an IT services company, will assist Giga with onsite operations, while Phoenix Global Resources, an oil and gas company, will supply the gas required for Bitcoin mining.

As Bitcoin mining firms gear up for the impending halving event, slated for around April 20th, there could be a shift in global hash rate distribution, potentially favoring countries with lower electricity costs and those which tend to favor cryptocurrencies in general, like Argentina and Paraguay.