El Salvador has officially launched its first domestic Bitcoin (BTC) mining pool as the Volcano Energy project begins mining blocks through the Lava Pool in partnership with Luxor Technology.
The bitcoin-friendly country’s $1 billion renewable energy project made headlines earlier in 2023, as stablecoin issuer Tether was among the companies investing in the project that plans to generate electricity from renewable sources in El Salvador to power future bitcoin mining operations. in the country.
Volcano Energy leverages Luxor’s expertise in providing Bitcoin mining software and services. The project will also use Luxor’s Hashrate Forward Marketplace to mitigate market volatility through automated risk management strategies used by other major Bitcoin mining operators.
– Volcano Energy (@Volcano_Energy) October 3, 2023
A statement from Gerson Martinez, Chief Strategy Officer at Volcano Energy, highlighted El Salvador’s ongoing efforts to secure a first-mover advantage as a nation-state adopting Bitcoin:
“Our vision is to create a vertically integrated energy and Bitcoin mining company that accumulates value for investors and for all Salvadoran citizens.”
Ethan Vera, Luxor’s Chief Operating Officer, said that establishing Volcano Energy and starting Bitcoin mining locally will contribute to the spirit of geographical decentralization in Bitcoin.
The announcement also points to the possibility that countries with abundant sources of renewable energy could use Bitcoin mining to improve the economics of new energy projects. Mining operations can provide a “flexible buyer of first and last resort” for energy producers and serve as an alternative source of revenue.
As a public-private partnership, Volcano Energy is set to contribute 23% of its net income from mining operations to the government of El Salvador. Mining profits are also set to be reinvested in energy transmission and infrastructure to stimulate economic and technological growth in the Central American country.
Related: Bitcoin-Friendly El Salvador Sees Bond Yields Rise to 70% in 2023
The first phase of the Volcano Energy project includes the construction of a 241 MW renewable energy park in Metapan which will include 169 MW of solar PV and 72 MW of wind energy. The long-term goal of the project is to take advantage of the country’s abundant geothermal energy.
In a previous exclusive interview with Cointelegraph at the Money20/20 conference in Amsterdam, Paolo Ardoino, Tether’s chief technology officer, said the company’s investment aims to diversify its interests in energy production while leveraging renewable energy for Bitcoin mining.
Cointelegraph journalist Joe Hall travels to El Salvador in 2023, documentation The adoption of Bitcoin as a means of payment over the past two years since it became the first country in the world to officially introduce legal Bitcoin.
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