A public-private partnership in El Salvador has received an initial $250 million out of a total $1 billion investment for the creation of a Bitcoin mining farm. The project, led by Volcano Energy, aims to establish a 241-megawatt power generation park in the Metapán region of the country.
The funds will be used to develop the park, utilizing solar and wind energy to power the Bitcoin mining operations. Max Keiser, chairman of Volcano Energy, announced the news on Twitter.
Bitcoin mining is known for its energy-intensive nature, drawing criticism from environmentalists concerned about its impact on deforestation and climate change. Tether, the issuer of a stablecoin, is one of the investors in the project, although the exact amount of its investment has not been disclosed. Paolo Ardoino, Tether’s chief technology officer, stated that the investment demonstrates the stablecoin issuer’s commitment to renewable energy production and mining infrastructure.
The power generation park will have a capacity of 241 megawatts, with 169 megawatts coming from photovoltaic solar energy and 72 megawatts from wind energy. Volcano Energy estimates that the computing power of the park will exceed 1.3 exahashes per second, potentially positioning it among the top 20 Bitcoin mining pools globally.
Volcano Energy considers this project to be a pioneering example of Bitcoin mining powered by renewable energy, showcasing the industry’s innovation and growth in a competitive landscape.
The Salvadoran government will play a significant role in planning and executing the initiative, securing 23% of revenues. The investors will own 27% of the project, while the remaining 50% will be reinvested in expanding energy production capacity and advancing Bitcoin mining.
Max Keiser, a prominent Bitcoin advocate and podcaster, serves as an advisor to President Nayib Bukele and chairman of Volcano Energy.
El Salvador continues to make efforts to promote Bitcoin adoption after becoming the first country to adopt BTC as legal tender in 2021.
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