In El Salvador, Volcano Energy has raised $250 million to create a major Bitcoin mining farm powered by 241 megawatts of renewable energy. Tether, the issuer of the USDT, took part in this fund-raising, which is due to be increased to $1 billion.
Volcano Energy wants to make El Salvador a leader in Bitcoin mining
In El Salvador, the Volcano Energy project has just announced that it has raised $250 million to create a major Bitcoin (BTC) mining farm. Ultimately, the project even intends to raise up to a billion dollars in funding:
Wait is over! The power of @Volcano_Energy is here ElSalvador BTC Bitcoin VolcanoEnergy pic. twitter.com/HTkd5ZOKfM
– Volcano Energy (@Volcano_Energy) June 5, 2023
The goal is ambitious, as the site intends to launch its activity with an initial computing power of 1.3 exahashes per second, which corresponds more or less to 0.32% of the entire hashrate securing the Bitcoin network.
Located in Metapán, in the department of Santa Ana, the facilities will be powered by 241 megawatts of electricity, generated by 169 megawatts of solar power and 72 megawatts of wind power. Volcano Energy intends to make El Salvador a leader in mining supported by renewable energy.
The country’s government has been granted a 23% share of future revenues. Project investors will share 27%, while the remaining 50% will be used to develop energy production and mining capacities.
Josue Lopez, CEO of Volcano Energy, spoke about the role of renewable energy in securing the Bitcoin blockchain:
“Right now, renewable energy is the key to securing the Bitcoin blockchain.
“Currently, more than 52% of Bitcoin’s mining is done sustainably. We believe this percentage will increase significantly in the coming years, thanks to significant investments like ours. “
Tether invests in project
While the amount of the investment has not been disclosed, Tether, which issues the popular stablecoin USDT, has confirmed that it has participated in Volcano Energy’s $250 million funding round.
Paolo Ardoino, Tether’s CTO, commented on the participation:
Volcano Energy represents one of the most revolutionary and strategic initiatives we are investing in and we look forward to working alongside Josue Lopez and his team to make El Salvador a global force in renewable energy production. “
After its extensive work to get Bitcoin adopted in the country, mining is now the next logical step for El Salvador. While it is still far too early to judge the effectiveness of these decisions, the coming years will be rich in lessons about what the ecosystem can bring to a state, and no doubt other nations are keeping a close eye on President Nayib Bukele’s policies.
