Giga Energy Expands Crypto Mining to Argentina, Tapping into Flared Gas Trend

Giga Energy, a Texas-based crypto mining firm, has expanded its operations to Argentina, following its previous expansions across the U.S. and into Shanghai. This move is part of the company's strategy to tap into the gas flaring trend.

Since 2019, Giga Energy has been building and operating in-house mining operations, deploying 150 megawatt containers worldwide. In Argentina, the company has partnered with oil and gas company Phoenix Global Resources and Exa Tech to launch a two-megawatt Bitcoin mine on top of Vaca Muerta. CNBC first reported on Giga Energy's expansion plans.

"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," said Giga Energy co-founder Brent Whitehead in a social media post.

Giga Energy's approach to Bitcoin mining involves taking flared natural gas and converting it into electricity to run the Bitcoin mines. The company places a shipping container full of thousands of Bitcoin miners on an oil well and diverts the natural gas into generators, which then convert the gas into electricity used to power the crypto miners.

Bitcoin mining is a controversial process known for its negative impact on the environment. However, Giga Energy's method of using flared natural gas helps to mitigate this impact by converting waste gas into usable energy.

In December, Unblock Global co-founder Tomas Ocampo announced via social media that the firm had raised $15 million to use "flare gas" from Argentina's biggest gas field, Vaca Muerta, for flared gas mining, which involves transforming excessive natural gas into energy to mine cryptocurrency.

The recent bull market in the cryptocurrency space has triggered an increase in capital spend and expansion plans among mining firms. Bitcoin's record highs exceeding $72,000 have led to firms like MicroStrategy and Coinbase opting for convertible note issuance, while Marathon Digital has pursued acquisitions as part of its growth strategy, according to reports.