El Salvador's Bitcoin Miner Volcano Energy Launches with $250M Investment
The initial installment of $250 million has been received by a public-private partnership in El Salvador, which has committed to investing a total of $1 billion to establish a Bitcoin mining facility.
Because Bitcoin
June 7, 2023
Cointelegraph reported that the first installment of $250 million has been received by a public-private partnership in El Salvador, which aims to invest a total of $1 billion in establishing a Bitcoin mining facility. This initial funding marks the beginning of a 241-megawatt (MW) power generation park in the Metapán region of the country.
Volcano Energy, the company responsible for the project, stated that the funds will be utilized to develop the power generation park, utilizing solar and wind energy, which will eventually power the Bitcoin mining operation. Max Keiser, the chairman of Volcano Energy, announced the news on Twitter on June 7.
Bitcoin mining involves the use of high-power computers connected to a global network, consuming significant amounts of electricity. This energy-intensive process has faced criticism from environmentalists, who express concerns about its contribution to deforestation and climate change.
Stablecoin issuer Tether has invested in the first funding round for Volcano Energy, a renewable energy project. The specific investment figure from Tether remains undisclosed, but the company aims to drive investment in renewable energy production and mining infrastructure.
Volcano Energy plans to divide its 241 MW power generation capacity between photovoltaic solar energy and wind energy. The facility's computing power is projected to exceed 1.3 exahashes per second, positioning it among the top 20 Bitcoin mining pools worldwide. The Salvadoran government will also be involved, securing a 23% revenue share, while investors will own 27%, with the remaining 50% reinvested in expanding energy production and advancing Bitcoin mining.
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