Volcano Energy Secures $1 Billion for Solar and Wind-Powered Bitcoin Mine in El Salvador

Volcano Energy, in collaboration with Tether and other investors, has announced $1 billion in commitments to establish a 241 MW bitcoin mining site in El Salvador. The mining facility, powered by solar and wind energy, aims to harness renewable resources for sustainable cryptocurrency mining. This groundbreaking initiative marks an important step in El Salvador’s evolving role in the crypto industry.

Volcano Energy unveiled plans to construct a state-of-the-art bitcoin mining site in the Metapán region of El Salvador. The project will leverage 169 MW of solar energy and 72 MW of wind energy, resulting in a computing power of over 1.3 exahash/second (EH/s). By utilizing renewable energy sources, Volcano Energy aims to minimize the environmental impact of cryptocurrency mining while maximizing efficiency.

The government of El Salvador will play a vital role in planning and executing the project. Volcano Energy has secured a preferred participation equivalent to 23% of revenues for the government. External investors, including Tether, will own 27% of the venture, while the remaining 50% will be reinvested to expand energy production and mining capabilities. This collaborative approach ensures a sustainable and mutually beneficial partnership.

While previous mining initiatives in El Salvador have focused on geothermal energy, the connection between the new solar and wind energy park and volcanic activity remains unclear. Volcano Energy envisions this mining site as a stepping stone toward a geothermal future. While details regarding the roadmap are yet to be provided, the project represents a significant stride in leveraging El Salvador’s diverse energy resources.

Tether’s Strategic Investment: Tether, the issuer of stablecoin USDT, is one of the prominent investors supporting Volcano Energy’s groundbreaking initiative. As part of its efforts to diversify its strategic ecosystem, Tether sees the solar and wind-powered bitcoin mine as a pioneering project. Paolo Ardoino, Chief Technology Officer of Tether, stated that this investment aligns with their mission to support innovative developments within the crypto industry.

Exploring Opportunities in New Frontiers: As mining opportunities become limited in North America, companies are seeking investment prospects in regions like Latin America and the Middle East. El Salvador’s commitment to renewable energy and its supportive regulatory environment make it an attractive destination for cryptocurrency mining ventures. Volcano Energy’s project represents a notable investment in El Salvador’s growing crypto ecosystem, paving the way for further developments in the region.