Volcano Energy, a renewable energy developer, has announced that the funds will be utilized for the establishment of a power generation park with an estimated capacity of 241 MW
The public-private partnership in El Salvador, aimed at establishing a Bitcoin mining farm, has received its initial investment of $250 million out of a total $1 billion. This significant funding kickstarts the implementation of a 241 MW Bitcoin mining operation in the country.
On June 7, Max Keiser, the chairman of Volcano Energy, announced the news on his Twitter account. Volcano Energy, the renewable energy developer, confirmed that the funds received would be allocated to establish an estimated 241 MW power generation park in the northwestern municipality of Metapan. This power generation park will utilize solar and wind energy sources to eventually power the Bitcoin mining farm.
— Max Keiser, sr. bitcoin advisor pres. Bukele 🌋🧢 (@maxkeiser) June 7, 2023
Bitcoin mining involves the utilization of high-power computers connected to a global network, consuming substantial amounts of electricity in the process. This energy-intensive activity has faced criticism from environmentalists due to concerns about its potential contribution to deforestation and climate change.
Also Read This Related:Bitcoin Standard Author Becomes Economic Advisor for El Salvador
Tether, the stablecoin issuer, has been identified as one of the investors in the initial capital raise for the development of Volcano Energy. However, the specific amount of Tether’s investment has not been disclosed.
Paolo Ardoino, the chief technology officer of Tether, stated that this investment signifies the company’s commitment to promoting investment in renewable energy production and mining infrastructure.
Volcano Energy has revealed its plans to allocate the estimated 241 MW power generation capacity between photovoltaic solar energy (169 MW) and wind energy (72 MW).
Additionally, Tether has stated that the park’s computing power is expected to surpass 1.3 exahashes per second. This achievement would position Volcano Energy’s cumulative Bitcoin mining hash rate among the top 20 pools globally.
Volcano Energy describes the park as a trailblazing model of Bitcoin mining powered by renewable energy, symbolizing the continuous innovation and expansion within the competitive landscape of the industry. They aim to “flip the script” on traditional finance by driving the Bitcoin revolution in El Salvador through the use of renewable energy.
The government of El Salvador will assume a vital role in the strategic development and implementation of the initiative, ensuring their preferred involvement, equivalent to 23% of revenues. The investors will hold a 27% stake, while the remaining 50% will be reinvested to enhance energy production capabilities and propel the advancement of Bitcoin mining.
Max Keiser, a prominent Bitcoin advocate and broadcaster, has emerged as a key figure in El Salvador’s adoption initiatives. In addition to serving as an advisor to President Nayib Bukele, Keiser holds the position of chairman at Volcano Energy.
This partnership highlights the country’s ongoing commitment to promoting Bitcoin adoption, building on its pioneering move of becoming the first nation to recognize BTC as legal tender three years ago.
Also Read This Related:Strike relocates HQ to El Salvador, expands global Bitcoin payments to 65 countries.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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