Argentina has become one of the most convenient countries for Bitcoin miners, thanks to its several competitive advantages.
Bitcoin miners are still looking for jurisdictions that offer incentives or advantages to carry out their mining activity and Argentina, a country located in the extreme south and southeast of South America, has several qualities that make it attractive for this activity.
In 2022, the president of the crypto mining company Southmining Capital, Paulino Rossi, stressed that the country has several competitive advantages for mining bitcoins, such as the availability of areas with very cold climates, which reduce the cooling requirements of mining equipment and abundant energy resources, which allow very low electricity rates and, therefore, help reduce the costs of mining the cryptocurrency, compared to other locations worldwide.
These competitive advantages are what the American company Giga Energy has envisioned, which is moving part of its operations to the South American country.
Giga Energy expands its Bitcoin mining operations in Argentina
Giga Energy has launched an ambitious project to increase the profitability of its mining operations. According to a report by CNBC, the US company has targeted the Mendoza region to establish its new facilities and take advantage of the energy potential of the existing oil fields in the region.
The company, which is headquartered in Texas, has already conducted tests at one of the oil fields, which involved generating electricity from the use of methane gas to power the operations of several bitcoin mining rigs. At the end of February, the company announced that it had already produced 408 megawatts (MW) of power in modular data centers and power infrastructure, equivalent to powering more than 306.000 American homes.
According to Giga Energy co-founder Matt Lohstroh, between $200.000 and $250.000 worth of Bitcoin was generated during the testing phase that began in December.
A strategic area for the crypto mining industry
The expansion, driven by Giga Energy, seeks to harness natural gas that is normally wasted in the oil industry to generate electricity.
Brent Whitehead, another of the company's co-founders, stressed that the expansion into Argentina represents a significant milestone, both for Giga Energy's growth and for its goals of mitigating emissions and gas flaring.
Companies seeking to reduce this terrible practice divert natural gas that is normally flared or vented in oil fields into special generators that convert this gas into electricity, and in the crypto mining industry, it is this electricity that is used to power Bitcoin mining equipment. Therefore, the project promoted by Giga Energy encompasses numerous benefits for the environment, the country's economy, and the boost to the cryptocurrency industry.
In addition to Giga Energy, Unblock Computos and FMI Minecraft Management are also expanding their operations to Argentina, specifically to the Vaca Muerta region, which is one of the most important oil fields in the country.
Serodino uses Bitcoin mining as a solution for economic growth
Bitcoin mining has also gained ground in the commune of Serodino, located in the province of Santa Fe. In 2022, this commune highlighted that it had found a financial solution in Bitcoin mining to boost its development and economic growth.
Through the revenue generated by Bitcoin mining, Serodino finances improvements to its railway infrastructure.
Juan Pio Drovetta, president of the commune, said that bitcoin mining would allow economic resources to be generated constantly to cover local needs.
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