El Salvador Launches First Local Bitcoin Mining Pool through Volcano Energy Project
Summary:
El Salvador has launched its first local Bitcoin mining pool as part of the Volcano Energy project in partnership with Luxor Technology. The cryptocurrency-friendly country's $1 billion renewable energy plan, which involves mining of Bitcoin using renewable energy sources, sees companies like Tether investing. The strategy aims to use Luxor's deep-seated experience with Bitcoin mining software and services and manage the market's volatility using proven strategies. The ultimate vision of the project is to create an integrated energy and mining company beneficial to investors as well as Salvadoran citizens.
El Salvador has officially initiated its initial Bitcoin (BTC) mining pool through the Volcano Energy project, sparking its mining activities through Lava Pool, a collaboration with Luxor Technology. The cryptocurrency-friendly nation's renewable energy plan, valued at $1 billion, came to prominence in 2023, with stablecoin issuer Tether being amongst the consortium investing in the project aspiring to harness renewable energy to fuel Bitcoin mining in the nation.
In its venture, Volcano Energy will be facilitating the expertise of Luxor in Bitcoin mining software and services. Luxor's Hashrate Forward Marketplace will be employed as well to soften the market's fluctuation by employing risk management strategies used by established Bitcoin miners. A tweet from Volcano Energy indicated the potential Bitcoin holds in addressing climate issues ahead of Solar energy, thanks to Bitcoin's capacity to control methane emissions.
In a statement, the chief strategy officer of Volcano Energy, Gerson Martinez, emphasized El Salvador's continuous endeavors to obtain a pioneer advantage as a Bitcoin-embracing country. He said they envisage setting up an integrated energy and Bitcoin mining company with value addition to its investors as well as Salvadoran civilians. Luxor's chief operating officer, Ethan Vera, endorsed the founding of Volcano Energy and the kickoff of local Bitcoin mining as contributors to Bitcoin's geographical decentralization philosophy.
The announcement also put forward the opportunity renewable-energy-rich countries have in enhancing their new energy projects economically through Bitcoin mining. Mining operations can act as a "flexible buyer of first and last resort" for energy producers, offering an alternate revenue source.
Temporarily established as a public-private fusion, Volcano Energy is committed to channeling 23% of its net mining proceedings to the government of El Salvador. The profit from mining is also planned to be reinvested into the infrastructure of energy transmission to encourage economic and technological evolution in the nation.
The preliminary phase of the Volcano Energy project involves the assembly of a 241-megawatt (MW) green energy park in Metapán, composed of 169 MWs of solar energy and 72 MWs of wind energy. The long-term vision of the project is to exploit the copious geothermal energy in the country.
During the Money20/20 conference in Amsterdam, Paolo Ardoino, Tether's chief technology officer, expressed to Cointelegraph that the company's investment was destined to diversify its interests into energy production while utilizing renewable energy for Bitcoin mining.
Cointelegraph's journalist Joe Hall visited El Salvador in 2023, documenting the use of Bitcoin as a payment mode in the two years since the nation became the first worldwide to officially legalize BTC as a legal tender.
Published At
10/4/2023 1:00:00 PM
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