Bitcoin-based Texas miner Giga Energy has expanded into Argentina as part of an initiative to harness energy wasted by "burning natural gas" in the country's South American oil fields.
Giga co-founder Brent Whitehead, in a March 26 post on LinkedIn, described the expansion as a "significant milestone" for his company.
"This move not only expands our operational landscape, but also aligns with our vision of mitigating flaring around the world."
Gas flaring is the burning of natural gas associated with oil production. The process releases methane, which Giga then converts into electricity to power Bitcoin mining platforms.
According to a March 26 CNBC report, Giga will place a large shipping container with thousands of Bitcoin miners on the oil well, direct the excess gas to generators, and then use the energy to power Bitcoin mining platforms.
Giga's mining facility in Argentina - based in Mendoza province - has been in the testing phase since December and has already mined Bitcoins worth between $200,000 and $250,000, another co-founder of the company, Matt Lohstroh, told CNBC.
However, the company is still waiting to import all the necessary equipment before it can fully scale the operation. Until then, the company does not expect to make a profit.
According to a recent research paper published by the University of Michigan , Argentina boasts the second-largest shale gas reserves in the world.
Whitehead told CNBC that the company's Bitcoin mining operations will also reduce methane emissions.
"By capturing trapped natural gas to power modular data centers for energy-intensive computing, Giga is actively contributing to reducing global methane emissions."
IT services company Exa Tech will help Giga operate the on-site operation, while oil and gas company Phoenix Global Resources will provide the gas needed to power the Bitcoin diggers.
According to CNBC, Giga first began Bitcoin mining operations in 2019 and has 150 megawatts of containers installed at its facilities in Texas and Shanghai.
