Giga Energy, a Bitcoin mining company based in Texas, has recently expanded its operations to Argentina. The company aims to utilize wasted energy from “natural gas flaring” on the country’s oil fields. Brent Whitehead, co-founder of Giga, described this expansion as a significant milestone for the company. Natural gas flaring refers to the burning of natural gas that is associated with oil extraction. Giga converts the released methane into electricity to power its Bitcoin mining rigs.
As part of the expansion, Giga will place a large shipping container with thousands of Bitcoin miners on top of an oil well. The excess gas will be diverted into generators, and the energy generated will be used to power the Bitcoin mining rigs. Giga’s mining site in Argentina, located in the province of Mendoza, has been in a test phase since December and has already mined Bitcoin worth between $200,000 and $250,000.
However, Giga is still waiting to import all the necessary equipment to fully scale its operations in Argentina. Therefore, the company does not expect to turn a profit until then. Argentina is known to have the second-largest shale gas reserve in the world.
In addition to Bitcoin mining, Giga’s operations will also help reduce methane emissions, according to Whitehead. The company will be assisted by IT services company Exa Tech for onsite operations, and oil and gas firm Phoenix Global Resources will provide the necessary gas to power the Bitcoin miners.
Giga first launched its Bitcoin mining operations in 2019 and currently has 150 megawatts worth of containers installed in its facilities in Texas and Shanghai.
This move comes as Bitcoin mining firms prepare for the upcoming Bitcoin halving event, which is expected to occur around April 20. The halving event will reduce the Bitcoin reward paid to miners from 6.25 BTC to 3.125 BTC. It is anticipated that the event may lead to a shift in global hashrate from the United States to countries with cheaper electricity rates, such as Argentina and Paraguay.
In conclusion, Giga Energy’s expansion into Argentina is a significant step for the company, allowing it to utilize wasted energy from natural gas flaring for Bitcoin mining. The company is currently in a test phase and expects to turn a profit once all necessary equipment is imported. This expansion will also help reduce methane emissions. Giga’s operations in Argentina align with the upcoming Bitcoin halving event, which could lead to a shift in global hashrate.