Volcano Energy, a company that combines private and public capital, will manage it in conjunction with Luxor Technology.
Key facts:
- Lava Pool will harness geothermal energy produced in El Salvador.
- Volcano Energy will also create a Bitcoin mining farm with 241MW of power.
Volcano Energy and Luxor Technology put into operation the first Bitcoin mining pool in El Salvador. It will seek to take advantage of geothermal energy, coming from the volcanoes of the Central American country.
In the official statement, to which CriptoNoticias had access, it is detailed that the public-private capital company Volcano Energy “will only mine Bitcoin through Lava Pool”. It should be noted that 23% of the profits generated by Volcano Energy correspond to the Government of El Salvador, one of the founding parties of the company.
Luxor Technology’s role in Lava Pool is to provide “a frictionless and reliable service, given the company’s track record in Bitcoin mining software and services”.
In this way, El Salvador fulfills what it had announced in July 2023, when it unveiled the project of its own Bitcoin mining pool. As explained in CryptoNews at that time, Lava Pool will complement the construction of a Bitcoin mining farm being built in Metapan, which demanded an investment of USD 1 billion and will operate with solar and wind energy.
This farm will provide 1.3 EH/s (hexahashes per second) of hashrate to the Bitcoin network and will have a final power output of 241MW (megawatts) when completed.
Considering the current Bitcoin hashrate, El Salvador will contribute 0.30% of the total through its farm in Metapan. Source: Hashrate Index.
The Volcano Energy and Luxor release details that “in countries with abundant renewable energy sources, such as El Salvador, Bitcoin miners can improve the economics of new energy projects by offering themselves as a flexible buyer of first and last resort.” “Miners generate immediate revenue for new energy projects, especially in remote areas of the country, and also provide a flexible load that can be instantly switched off to back up the grid during times of stress,” they add.
According to the same document, El Salvador plans to reinvest mining profits in power transmission and distribution infrastructure in its country.
El Salvador moves forward in its adoption of Bitcoin
As detailed in Cryptopedia, CryptoNews’ educational section, a Bitcoin mining pool brings together a set of miners who combine their resources to increase their chances of successfully mining a block on the Bitcoin network and thus receive the corresponding reward. Instead of competing individually against each other, miners in a pool work together to find the hashes that Bitcoin mining demands, and then distribute the rewards proportionally according to the hash power each contributes.
Lava Pool is the first pool of its kind in El Salvador. Regarding the project in particular, Gerson Martinez, CSO (chief security officer) of Volcano Energy, assured that “Lava Pool is another example of El Salvador’s first-mover advantage as a nation-state in the Bitcoin ecosystem.” “Our vision is to create a vertically integrated Bitcoin mining and energy company whose value is accretive to investors and all Salvadoran citizens,” he added.
For his part, Ethan Vera, COO (chief operating officer) of Luxor, commented that “the ethos of Bitcoin mining revolves around geographic decentralization, and the development of mining pool infrastructure in El Salvador will contribute to this goal.”
Source:
https://www.criptonoticias.com/mineria/el-salvador-primer-pool-mineria-bitcoin-lava-pool
