A remarkable venture in El Salvador has recently taken a notable step forward. Volcano Energy, an organization working hand-in-hand with the country’s government, has obtained an investment of $250 million.
This funding is part of an ambitious $1 billion vision to establish a Bitcoin mining farm utilizing renewable energy.
The allocation of this initial investment will be directed towards creating a power generation park of 241 megawatts in the region of Metapán, a significant stride towards environmental consciousness in the world of cryptocurrency.
A new paradigm in power generation
The focal point of the endeavor is to develop an expansive power generation park using solar and wind energy resources. The ultimate objective of this endeavor is to use this renewable energy to power a Bitcoin mining operation.
For those unfamiliar, Bitcoin mining involves the use of high-power computers connected to a global network, and it consumes significant amounts of electricity.
Unfortunately, this energy-consuming aspect of Bitcoin mining has drawn criticism, particularly from environmentalists, who express concerns that it may contribute to deforestation and climate change.
However, Volcano Energy’s plan to utilize solar and wind energy reflects a shift in the industry towards more sustainable practices. Among the financial supporters contributing to this first round of funding is Tether, a well-known stablecoin issuer.
Although the precise sum of Tether’s investment has not been disclosed, Paolo Ardoino, Tether’s chief technology officer, emphasized the company’s commitment to encourage investment in renewable energy production and mining infrastructure.
Volcano Energy harnessing the power of sun and wind
As per the plans disclosed by Volcano Energy, the park’s power generation capacity of 241 MW will be split between 169 MW of photovoltaic solar energy and 72 MW of wind energy.
This unique combination is expected to generate a computing power that surpasses 1.3 exahashes per second, as per Tether. If this target is achieved, Volcano Energy’s Bitcoin mining hash rate would rank within the top 20 pools on a global scale.
The company has referred to this park as an innovative example of Bitcoin mining driven by renewable energy, showcasing the industry’s continuous evolution and growth amidst a highly competitive landscape.
Volcano Energy’s initiative aims to redefine traditional finance by powering Bitcoin’s growth in El Salvador through renewable energy.
In this innovative venture, the Salvadoran government will play a significant part, not only in the planning and execution of the project but also by retaining a preferred participation, equivalent to 23% of the revenues.
Investors, in turn, will hold 27% ownership, while the remaining 50% will be re-invested in expanding energy production capacity and advancing Bitcoin mining.
Max Keiser, chairman at Volcano Energy and a well-known Bitcoin advocate, has been instrumental in advancing El Salvador’s adoption of Bitcoin, offering guidance to President Nayib Bukele.
El Salvador continues to set the pace in the global Bitcoin landscape since it became the first nation to declare Bitcoin as legal tender in 2021.
The inception of Volcano Energy’s power generation park marks another milestone in this journey, affirming the nation’s commitment to Bitcoin while prioritizing environmental sustainability.