El Salvador’s Bitcoin mining initiative, Volcano Energy, has recently launched with a $250 million investment. The funding aims to facilitate the creation of an estimated 241 MW power generation park utilizing solar and wind energy in the northwestern municipality of Metapan. This park will eventually power the Bitcoin mining farm, contributing to the country’s renewable energy development and mining infrastructure.
Bitcoin mining, known for its extensive use of high-power computers connected to a global network, consumes enormous amounts of electricity. Consequently, this energy-intensive process has garnered criticism from environmentalists, who argue that it exacerbates climate change and contributes to deforestation.
As a part of this first-round capital raise, Tether – a well-known name in the cryptocurrency world – has invested an undisclosed amount in Volcano Energy. Tether’s Chief Technology Officer, Paolo Ardoino, stated that this investment aims to propel further engagement in renewable energy production and mining infrastructure.
According to Volcano Energy, the planned power generation capacity will be divided between 169MW of photovoltaic solar energy and 72MW of wind energy. Tether estimates that the computing power of the park will exceed 1.3 exahashes per second; if this is accomplished, it will position Volcano Energy’s cumulative BitcoinBTC mining hash rate among the top 20 pools worldwide.
This park intends to showcase the capabilities of renewable energy driving Bitcoin mining, emphasizing the industry’s innovation and growth in competitive landscapes. The government of El Salvador will play a key role in planning and executing this initiative, securing preferred participation equivalent to 23% of revenues. Investors will own 27%, with the remaining 50% reinvested in expanding energy production capacity and furthering Bitcoin mining development.
Volcano Energy’s chairman, Max Keiser, plays a significant role in El Salvador’s Bitcoin adoption initiatives. He serves as an advisor to President Nayib Bukele and has been instrumental in El Salvador’s decision to make BTC legal tender three years ago.
As the Central American nation continues its efforts to promote Bitcoin adoption, this renewable energy-driven mining farm serves as a testament to the power of innovation and the potential for eco-friendly mining infrastructure amidst the growing concerns for climate change.