Renewable energy developer Volcano Energy has invested $250M as part of its $1B commitment to Bitcoin mining in El Salvador. The funds would be used to construct a 241 MW solar and wind power generation park.
The first $250 million has been contributed to the public-private partnership in El Salvador that will invest $1 billion to build a Bitcoin mine. This initial funding injection launches 241 megawatts (MW) of Bitcoin mining in El Salvador.
Max Keiser, the chairman of Volcano Energy, announced the news via Twitter on June 7th. The renewable energy developer Volcano Energy stated that the funds would be used to construct a 241 MW solar and wind power generation park in the northwestern municipality of Metapan, which will ultimately power the Bitcoin mining farm.
Bitcoin mining utilizes high-powered computers connected to a global network, consuming enormous electricity. Environmentalists are concerned that the energy-intensive practice will exacerbate deforestation and climate change.
Tether is listed as an investor in first-round capital financing to develop Volcano Energy, although their investment amount currently needs to be discovered.
Paolo Ardoino, chief technology officer of Tether, stated that the investment signifies the stablecoin issuer’s intent to promote investment in renewable energy production and mining infrastructure.
Volcano Energy estimates that the 241 MW of power generation capacity will be split between 169 MW of photovoltaic solar energy and 72 MW of wind energy.
Tether estimates that the computing capacity of the park exceeds 1.3 exahashes per second. If attained, this would place Volcano Energy’s cumulative Bitcoin mining hash rate among the top 20 worldwide pools.
According to Volcano Energy, the park is a pioneering example of Bitcoin mining powered by renewable energy, reflecting the industry’s constant innovation and expansion.
“Flip the script on traditional finance. Volcano Energy is powering the Bitcoin revolution in El Salvador with renewable energy.”
The government of El Salvador will play a pivotal role in the initiative’s planning and implementation, securing a preferred participation equal to 23% of revenues. The remaining 50% will be reinvested in expanding energy production capacity and advancing Bitcoin mining.
Bitcoin advocate and broadcaster Max Keiser play a pivotal role in El Salvador’s adoption initiatives, serving as an advisor to President Nayib Bukele and as chairman of Volcano Energy.
After becoming the first nation to make Bitcoin lawful tender roughly three years ago, the Central American country continues to promote Bitcoin adoption.
