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Volcano Energy, a company in El Salvador, recently announced that it has received the first $250 million of a promised $1 billion investment.
This money is planned to be used to build a new power generation park, which will be capable of producing 241 megawatts of energy.
The plan is a partnership between both public and private entities in El Salvador. The aim is to create a Bitcoin mining farm. This initial funding marks the beginning of the project in the Metapán region of the country.
Max Keiser, the chairperson of Volcano Energy, shared this news on Twitter. He explained that the company will use the money to build a park that generates power using solar and wind energy. This park will be located in the Metapan municipality, in northwest of El Salvador, and it will provide the energy needed for the Bitcoin mining farm.
Bitcoin mining is a process that uses a lot of power. It involves connecting high-power computers to a global network, which uses a huge amount of electricity. This has led to criticism from environmentalists, who worry about the effects on forests and the climate.
One of the investors in this project is Tether. The company hasn't yet revealed how much it has invested. However, its chief technology officer, Paolo Ardoino, has stated that this investment is part of Tether's plan to support renewable energy production and mining infrastructure.
Volcano Energy: Uniting Renewable Power and Bitcoin Mining in El Salvador
The new power generation park is expected to have a capacity of 241 MW. This will be split between 169MW from solar energy and 72MW from wind energy. Tether says that the park's computing power should be more than 1.3 exahashes per second. If this is achieved, Volcano Energy will have one of the highest Bitcoin mining hash rates in the world.
Volcano Energy says that this park will be an important step forward for renewable energy-powered Bitcoin mining. The company sees it as proof of the constant innovation and growth in the industry. It even suggests that this project is turning the traditional financial system on its head.
The government of El Salvador will have an important role in this project. It will help with planning and execution, and it will receive 23% of the revenues. Investors will own 27%, and the remaining 50% will be used to expand the energy production capacity and improve Bitcoin mining.
Max Keiser, who is a supporter of Bitcoin and a broadcaster, is also involved in this project. He advises President Nayib Bukele and serves as the chairperson of Volcano Energy.
This project is part of El Salvador's efforts to promote the use of Bitcoin. The country made Bitcoin legal tender three years ago, becoming the first nation to do so.
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