Volcano Energy announces that the investment will contribute to the establishment of a park for power generation with a capacity of 241 megawatts.

El Salvador’s ambitious project to set up a Bitcoin mining farm, backed by a public-private partnership pledging $1 billion, has just received its initial capital infusion of $250 million. This initial investment marks the launch of a 241-megawatt (MW) energy production complex in El Salvador’s Metapán area.

Volcano Energy, the company at the helm of this venture, indicates that the funds will facilitate the development of the power production complex. The complex will employ renewable sources of energy, including solar and wind power, which will in turn energize the Bitcoin mining operations. Max Keiser, the chairman of Volcano Energy, shared the news via Twitter on June 7.

Bitcoin mining employs high-power computer systems connected to an international network, consuming significant amounts of electricity. This energy-heavy practice has received criticism from environmental activists, highlighting its potential to contribute to deforestation and climate change.

Tether, a renowned stablecoin issuer, forms part of the inaugural investment group supporting Volcano Energy, even though the exact investment amount remains undisclosed. Paolo Ardoino, Tether’s Chief Technology Officer, stated that this investment demonstrates the stablecoin issuer’s commitment to promote investment in renewable energy production and mining infrastructure.

Exploring the Energy Profile and Potential Impact

Based on Volcano Energy’s report, the 241-MW power generation capacity will be allocated between 169 MWs of solar energy derived from photovoltaic systems and 72 MWs harnessed from wind energy. According to Tether, the computational power of the complex is predicted to exceed 1.3 exahashes per second. If realized, this would place Volcano Energy’s accumulated Bitcoin mining hash rate among the leading 20 mining pools globally.

Volcano Energy emphasizes that their park is an innovative example of Bitcoin mining driven by renewable energy. This approach reflects the industry’s relentless pursuit of innovation and expansion, even in a competitive environment:

“Rewriting the norms of conventional finance. Volcano Energy is fueling the Bitcoin revolution in El Salvador with renewable energy.”

The government of El Salvador will have a critical part to play in the project’s planning and execution, securing a preferred participation that translates to 23% of the revenues. The investors will hold a 27% stake, while the remaining 50% will be reinvested into boosting energy production capacity and advancing Bitcoin mining.

Key Players and the Future Outlook

Max Keiser, a Bitcoin enthusiast and podcast host, has a significant role in El Salvador’s adoption initiatives. He acts as an advisor to President Nayib Bukele and serves as the chairman at Volcano Energy.

El Salvador continues to push forward with its Bitcoin adoption initiatives, following its landmark decision to make Bitcoin legal tender in 2021 – a first in the world. With Volcano Energy’s launch, the country is set to forge a new path in sustainable cryptocurrency mining, marking a pivotal step in the global cryptocurrency narrative.