El Salvador has taken a major step in its journey towards embracing Bitcoin as it officially launched its first local Bitcoin mining pool. This development comes as part of the Volcano Energy project, which aims to generate electricity from renewable sources in El Salvador to power Bitcoin mining operations in the country.
Volcano Energy has partnered with Luxor Technology, a company specializing in Bitcoin mining software and services. Through this collaboration, the project will leverage Luxor’s expertise to mine Bitcoin blocks efficiently. Additionally, Luxor’s Hashrate Forward Marketplace, which employs automated risk management strategies, will help mitigate market volatility.
El Salvador’s $1 billion renewable energy project has garnered attention in recent months. Notably, stablecoin issuer Tether is among the companies that have invested in this initiative. By supporting the project, Tether aims to tap into renewable energy sources to mine Bitcoin while diversifying its interests into energy production.
Gerson Martinez, the Chief Strategy Officer of Volcano Energy, expressed the company’s vision of becoming a vertically integrated energy and Bitcoin mining company that benefits both investors and the citizens of El Salvador. The establishment of Volcano Energy and the launch of local Bitcoin mining align with the nation’s goal of becoming a first-mover in Bitcoin adoption.
Ethan Vera, the Chief Operating Officer of Luxor, emphasized that this development contributes to Bitcoin’s ethos of geographical decentralization. By leveraging renewable energy sources, countries can enhance the economics of new energy projects and establish mining operations as a reliable buyer of energy.
As a public-private partnership, Volcano Energy is committed to contributing 23% of its net income from mining operations to the El Salvador government. Furthermore, mining profits will be reinvested in energy transmission and infrastructure to foster economic and technological growth in the country.
The initial phase of the Volcano Energy project involves the construction of a 241-megawatt renewable energy park in Metapán. This park will comprise 169 MWs of photovoltaic solar energy and 72 MWs of wind power. Looking ahead, the project aims to tap into abundant geothermal energy sources in El Salvador.
The launch of the local Bitcoin mining pool marks another milestone for El Salvador in its Bitcoin journey. Two years ago, the country made history by becoming the first in the world to adopt Bitcoin as legal tender. Cointelegraph journalist Joe Hall documented this journey and the growing adoption of Bitcoin in El Salvador, highlighting how the cryptocurrency has transformed payment systems in the country.
In summary, El Salvador’s launch of its first local Bitcoin mining pool through the Volcano Energy project represents a significant step towards embracing Bitcoin and leveraging renewable energy sources for mining purposes. This development aligns with the nation’s vision of becoming a leader in Bitcoin adoption and promoting economic growth through the integration of cryptocurrency and renewable energy.