Giga Energy, a Bitcoin mining company based in Texas, has expanded its operations into Argentina. The company aims to make use of 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 firm. Gas flaring is the burning of natural gas associated with oil extraction, which releases methane. Giga converts this methane into electricity to power its Bitcoin mining rigs. The expansion involves placing a large shipping container with thousands of Bitcoin miners on top of an oil well, diverting the excess gas into generators, and using that energy for mining. Giga’s mining site in Argentina, located in the province of Mendoza, has been in a test phase since December and has already mined between $200,000 and $250,000 worth of Bitcoin. However, the full-scale operation is awaiting the import of necessary equipment and is not expected to turn a profit until then. Argentina has the second-largest shale gas reserve globally and Giga’s mining operation will also help reduce methane emissions. The company will receive assistance from IT services company Exa Tech for onsite operations, while oil and gas firm Phoenix Global Resources will supply the necessary gas. Giga initially launched its Bitcoin mining operations in 2019 and currently has 150 megawatts worth of containers installed in its facilities in Texas and Shanghai. This expansion comes as Bitcoin mining firms prepare for the upcoming Bitcoin halving event, which will reduce the Bitcoin reward paid to miners. The event may lead to a shift in global hashrate from the United States to countries with lower electricity rates, such as Argentina and Paraguay.
Giga Energy, a Bitcoin mining company based in the United States, set to establish a new facility in Argentina