Volcano Energy said the funds would go towards the development of a 241-megawatt power generation park.
A public-private partnership in El Salvador that pledges to invest USD 1 billion in the creation of a Bitcoin mining farm has received its first USD 250 million. This first disbursement of funds launches a 241-megawatt (MW) power generation farm in the country’s Metapan region.
Volcano Energy, the company behind the resin, said the funds will go towards the development of the power generation park using solar and wind energy, which will eventually power the Bitcoin mining operation. Volcano Energy CEO Max Keiser announced the news on Twitter on June 7.
.@Volcano_Energy 🌋🔌 receives the first $250M of a $1 billion commitment that kickstarts 241 MW’s of #Bitcoin mining in El Salvador.
“We Got The Power” https://t.co/j2wE6UJq0O pic.twitter.com/db3PZvFo4q
— Max Keiser (@maxkeiser) June 7, 2023
Bitcoin mining uses high-powered computers connected to a global network, consuming huge amounts of electricity in the process. The energy-intensive practice has been criticized by environmentalists, who fear it will exacerbate forest loss and climate change.
Stablecoin issuer Tether is among the investors in the first round of funding for Volcano Energy’s development, although its investment figure has not been disclosed. Tether’s chief technology officer Paolo Ardoino said the investment marks the stablecoin issuer’s intention to boost investment in renewable energy production and mining infrastructure.
According to Volcano Energy, the 241 MW of power generation capacity will be split between 169 MW of solar PV and 72 MW of wind power. According to Tether, the farm’s computational power is estimated to exceed 1.3 exahashes per second. If achieved, Volcano Energy’s cumulative Bitcoin hash rate would rank among the top 20 in the world.
According to Volcano Energy, the park is a pioneering example of renewable energy-powered Bitcoin mining, reflecting the industry’s continued innovation and growth in a competitive landscape:
“Flip the script on traditional finance. Volcano Energy is powering the Bitcoin revolution in El Salvador with renewable energy.”
The Salvadoran government will play a crucial role in the planning and execution of the initiative, securing a preferred stake equivalent to 23% of revenues. Investors will own 27%, with the remaining 50% to be reinvested in expanding energy production capacity and advancing Bitcoin mining.
Keiser, a Bitcoin advocate and podcaster, plays a key role in El Salvador’s adoption initiatives, serving as an advisor to President Nayib Bukele and president of Volcano Energy.
The Central American country continues its efforts to drive Bitcoin adoption after becoming the first nation to make BTC legal tender in 2021.
