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The public-private partnership in El Salvador to pump $1 billion into creating a Bitcoin (BTC) mining farm has received its first $250 million. This first release of funds kickstarts 241 megawatts (MWs) of Bitcoin mining in El Salvador.
The chairman of Volcano Energy, Max Keiser, took to his Twitter on June 7, to announce the news. Volcano Energy the renewable energy developer said the funds would go toward an estimated 241 MW power generation park using solar and wind energy in the northwestern municipality of Metapan, which will eventually power the bitcoin mining farm.
.@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, sr. bitcoin advisor pres. Bukele (@maxkeiser) June 7, 2023
Bitcoin mining uses high-power computers hooked up to a global network, sucking up massive amounts of electricity in the process. The energy-intensive practice has come under fire from environmentalists who are concerned that it would exacerbate forest loss and climate change.
Tether is named among the investors in a first-round capital raise to develop Volcano Energy although their investment figure is still undisclosed. Tether chief technology officer Paolo Ardoino said the investment marks the stablecoin issuer’s intent to drive investment in renewable energy production as well as mining infrastructure.
According to Volcano Energy, the estimated 241 MW power generation capacity will be divided between 169MW of photovoltaic solar energy and 72MW of wind energy. According to Tether, the computing power of the park is estimated to exceed 1.3 exahashes per second. If achieved, this would position Volcano Energy’s cumulative Bitcoin mining hash rate among the top 20 pools worldwide.
According to Volcano Energy, the park is a pioneering example of Bitcoin mining driven by renewable energy, reflecting the industry’s constant 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 government of El Salvador will play a crucial role in the planning and execution of the initiative, securing a preferred participation equivalent to 23% of revenues. The investors will own 27% and the remaining 50% will be reinvested in expanding energy production capacity and advancing Bitcoin mining.
Related: ‘The Bitcoin Standard’ author becomes economic adviser to El Salvador
Max Keiser, a Bitcoin advocate and broadcaster, plays a pivotal role in El Salvador’s adoption initiatives, serving as an advisor to President Nayib Bukele and holding the position of chairman at Volcano Energy.
The Central American country continues efforts to drive Bitcoin adoption after becoming the first nation to make BTC legal tender some three years ago.
Magazine: What it’s actually like to use Bitcoin in El Salvador
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