Texas-headquartered cryptocurrency mining company Giga Energy has extended its reach to Argentina, marking a significant step after its expansion across the U.S. and Shanghai, capitalizing on the rising trend of gas flaring.
Since 2019, Giga Energy has been constructing and managing in-house mining facilities worldwide, boasting 150-megawatt containers in operation.
In collaboration with oil and gas firm Phoenix Global Resources and Exa Tech, Giga Energy has launched a two-megawatt Bitcoin mining operation atop Vaca Muerta in Argentina. CNBC initially reported Giga Energy’s expansion plans.
Brent Whitehead, co-founder of Giga Energy, expressed enthusiasm about the expansion, stating, “We’re thrilled to announce Giga’s expansion into Argentina, a significant milestone in our journey. This move not only broadens our operational landscape but also aligns with our vision to mitigate flaring globally,” in a social media post.
Whitehead further remarked, “We are excited about the opportunities this new chapter will bring and look forward to making a positive impact in Argentina.”
Bitcoin mining is widely recognized as a controversial process due to its environmental implications.
Giga Energy, however, adopts a unique approach to mitigate this impact by repurposing flared natural gas to generate electricity for its Bitcoin mining operations. The company utilizes shipping containers housing thousands of Bitcoin miners, strategically positioned atop oil wells. By diverting the natural gas from these wells into generators, Giga Energy effectively converts it into electricity, which powers the crypto mining rigs. This innovative process not only addresses environmental concerns associated with traditional Bitcoin mining but also maximizes the utilization of otherwise wasted natural resources.
Flared Gas Crypto Mining in Argentina
In December, Tomas Ocampo, co-founder of Unblock Global, took to social media to announce that the company had successfully raised $15 million. The funds are earmarked for utilizing “flare gas” sourced from Argentina’s largest gas field, Vaca Muerta. Flared gas mining entails the conversion of excess natural gas into energy for cryptocurrency mining purposes.
Bitcoin Bull Market Triggers More Mining Spend
The recent bullish trend in the cryptocurrency market is prompting an uptick in capital expenditure, with various firms announcing expansion strategies.
With Bitcoin soaring to record highs surpassing $72,000, many companies are eager to leverage this surge. For example, MicroStrategy and Coinbase have chosen to issue convertible notes. Additionally, Marathon Digital has been actively pursuing acquisitions as a key component of its growth strategy, according to reports by Shalini Nagarajan.
