El Salvador Leaps into Renewable Bitcoin Mining with Volcano Energy

In a groundbreaking move, El Salvador has initiated the use of its volcanic energy for Bitcoin mining. This development comes exactly two years after the country made the historic decision to adopt Bitcoin as a legal tender.

Volcano Energy, the enterprise spearheading this initiative, officially announced the launch of its operations on Twitter, marking the start of a new era for the Central American nation​:

Volcano Energy has announced commitments of $1 billion for the construction of a 241-megawatt (MW) bitcoin mine in the Metapán region of El Salvador. One of the investors is Tether, the issuer of the stablecoin USDT.

The mining site, situated in Metapán, Santa Ana, in the country’s northwest, would be powered by a combination of 169 MW of solar energy and 72 MW of wind energy, boasting a computing power of over 1.3 exahash/second (EH/s).

The Salvadoran government would play a crucial role in planning and execution and has secured a preferred participation equivalent to 23% of revenues. Outside investors would own 27% of the venture, while the remaining 50% will be reinvested to expand energy production and mining capacities.

The move is part of President Nayib Bukele’s strategy to build economic liberty, self-determination, and sovereign wealth accumulation for future generations. Rather than increasing the nation’s debt, the president is now focused on paying down legacy debts and accumulating wealth for the people through a de facto sovereign wealth fund​.

Several prominent figures in the industry have commented on this significant development. For instance, Bitcoin proponent Max Keiser tweeted his thoughts on the latest developments:

El Salvador’s previous mining initiatives have largely centered around its geothermal energy potential. However, the connection between this new solar and wind energy park and the country’s volcanic activity is less clear. In its announcement, Volcano Energy suggested the project as a “pathway” to a “geothermal future,” but specifics on the integration of these renewable energy sources in the Bitcoin mining project remain undisclosed.