A public-private partnership in El Salvador pledging to pump $1 billion into making a Bitcoin (BTC) mining farm has obtained its first $250 million. This primary launch of funds kickstarts a 241-megawatt (MW) energy technology park within the nation’s Metapán area.
Volcano Vitality, the corporate behind the positioning, said the funds would go towards creating the facility technology park utilizing photo voltaic and wind vitality, which is able to ultimately energy the Bitcoin mining operation. Volcano Vitality chairman Max Keiser took to Twitter on June 7 to announce the information.
.@Volcano_Energy receives the primary $250M of a $1 billion dedication that kickstarts 241 MW’s of #Bitcoin mining in El Salvador.
“We Obtained The Energy” https://t.co/j2wE6UJq0O pic.twitter.com/db3PZvFo4q
— Max Keiser, sr. bitcoin advisor pres. Bukele (@maxkeiser) June 7, 2023
Bitcoin mining makes use of high-power computer systems hooked as much as a worldwide community, utilizing large quantities of electrical energy within the course of. The energy-intensive apply has come underneath hearth from environmentalists, who’re involved that it exacerbates forest loss and local weather change.
Stablecoin issuer Tether is among the many traders within the first funding spherical to develop Volcano Vitality, though its funding determine is undisclosed. Tether chief expertise officer Paolo Ardoino said the investment marks the stablecoin issuer’s intent to drive investment in renewable energy production and mining infrastructure.
According to Volcano Energy, the 241-MW power generation capacity will be divided between 169 MWs of photovoltaic solar energy and 72 MWs 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 Salvadoran government will play a crucial role in the planning and execution of the initiative, securing preferred participation equivalent to 23% of revenues. The investors will own 27%, with the remaining 50% reinvested in expanding energy production capacity and advancing Bitcoin mining.
Related: ‘The Bitcoin Standard’ author becomes economic adviser to El Salvador
Keiser, a Bitcoin advocate and podcaster, plays a pivotal role in El Salvador’s adoption initiatives, serving as an adviser to President Nayib Bukele and chairman at Volcano Energy.
The Central American country continues efforts to drive Bitcoin adoption after becoming the first nation to make BTC legal tender in 2021.
Magazine: What it’s actually like to use Bitcoin in El Salvador
