Tether Joins $1 Billion Initiative to Build World's Largest Bitcoin Mining Farm in El Salvador
Tether has invested $250 million in Max Keiser's startup Volcano Energy, which is building a bitcoin mining farm in El Salvador, according to Paolo Ardoino.
Because Bitcoin
June 5, 2023
Stablecoin issuer Tether has provided support to a startup named Volcano Energy, which aims to establish a bitcoin mining farm in El Salvador. Tether announced on Monday that it has invested in Volcano Energy's initial funding round, valued at $250 million, with Tether CTO Paolo Ardoino confirming that their investment represents only a portion of this round.
The total funding amount remains unclear, as Volcano Energy has yet to respond to The Block's request for comment, but the objective is to raise $1 billion for the mining project. Ardoino clarified that Tether's investment in Volcano Energy is relatively modest and does not impact the reserves that back their tokens, as it is covered by their excess reserves, which exceeded $2.5 billion at the end of Q1 2023. Volcano Energy is led by Josue Lopez, a 23-year-old bitcoin advocate from El Salvador serving as CEO, and Max Keiser, who serves as chairman and advises El Salvador President Nayib Bukele.
Located in the municipality of Metapan in El Salvador's Santa Ana department, the planned bitcoin mining farm will have a capacity of 241 megawatts (MW), with 169 MW allocated to photovoltaic solar energy and 72 MW to wind energy. This setup is anticipated to yield a computing power exceeding 1.3 EH/s (exahashes per second), with one EH/s equivalent to one quintillion hashes per second.
Paolo Ardoino expressed enthusiasm, stating, "We are excited to be among the initial pioneers of renewable energy in El Salvador as an equity investor and advisor. This investment further enhances Tether's journey in diversifying its strategic ecosystem."
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