The mining center uses stranded gas from exploration activities of YPF, Argentina’s largest energy company, and is an example of how Bitcoin mining can be a net positive for the environment
BUENOS AIRES, ARGENTINA – May 7, 2024 – Genesis Digital Assets Limited (“GDA”), one of the largest Bitcoin mining companies in the world in terms of hash rate, has announced the opening of a new data center in Argentina powered by YPF Luz, leading company in electric power generation. The announcement comes during a period of expansion, with GDA now operating 20 industrial-scale data centers across North America, South America, Europe, and Central Asia.
The company’s first facility in South America is located in Rincón de Los Sauces, in the Neuquén Province and has a total capacity of 7 MW and 1 MW of backup. The Bajo del Toro Thermal Power Plant, composed of YPF, Equinor and YPF Luz, will power 1,200 bitcoin mining machines and efficiently monetize stranded gas, which would otherwise be flared into the atmosphere.
With an abundance of energy, a favorable political climate, and a strong crypto ethos, Argentina is becoming increasingly important for Bitcoin mining and the broader industry. For this data center, GDA will use the electricity generated from stranded gas provided YPF Luz, an electric power generation company that has been leading the energy transition since 2013.
As stated by the IPCC, methane gas adversely impacts the environment as it is responsible for approximately a third of the warming the world is experiencing. Methane mitigation techniques, such as the utilization of stranded gas, are important to reduce emissions and combat global warming. As stated in an MIT working paper, Bitcoin mining could potentially reduce between 25% and 63% of carbon dioxide equivalent (CO2e) emissions by repurposing methane gas.
Abdumalik Mirakhmedov, Executive President and Founder of GDA (on the left) and Martín Mandarano, CEO of YPF Luz
“We believe that Argentina is an important country for Bitcoin mining, given its abundance of energy sources and business-friendly environment,” said Abdumalik Mirakhmedov, Executive President of GDA. “The opening of our first data center in South America is an important step in our geographic diversification efforts. And 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.”
With GDA utilizing the stranded gas, YPF and Equinor can offset its related costs and contribute to positive environmental changes, which ultimately could result in lower oil prices in the region. GDA, in turn, will access energy sources that are both competitively priced and reduce its global carbon emissions.
“In 2022 we were the first Argentine company to generate electrical energy for cryptocurrency mining from flare gas, an innovative solution in line with YPF’s energy transition needs“ said Martín Mandarano, CEO of YPF Luz. “This project with GDA allows us to bring YPF and Equinor, two companies committed to reducing the carbon footprint of their exploration activities, an adaptable and sustainable flare gas use solution.”
About GDA
GDA is one of the world’s largest and most experienced industrial-scale bitcoin mining companies, with a track record of building, managing, and scaling data center operations spanning nearly a decade. We champion innovation, responsible energy use, and investment in the communities where we operate globally, including the 20 data centers across North America, Europe, South America and Central Asia. With a total power capacity of over 500 MW, the company has brought over 150,000 miners online. At GDA, we are committed to supporting the infrastructure for the future of money by making the bitcoin network more robust, resilient, and secure.
About YPF Luz
YPF Luz (YPF Energía Eléctrica S.A.) is an electric power generation company that has been leading the energy transition since 2013. Its mission is to generate profitable, efficient and sustainable energy, optimizing natural resources to produce thermal and renewable energy. The company has reached a total installed capacity of 3.2GW that supplies the wholesale market and Argentine industries. It currently has a renewable installed capacity of 497MW and is constructing two wind farms totaling an additional 218 MW.
Media contact: gda@greenbrier.partners
