El Salvador, the first country to accept Bitcoin (BTC) as an official means of payment, has announced that it has launched a new initiative to use its volcanic geothermal energy to power one of the largest Bitcoin mining farms in the world.
Dubbed Volcano Energy, the project aims to position El Salvador as a global leader in the Bitcoin mining industry and promote energy competitiveness, diversification and geographic expansion for the Bitcoin network.
Volcano Energy is a joint venture between the government of El Salvador and a group of prominent Bitcoin industry leaders who have pledged $1 billion to build a 241-megawatt (MW) renewable power generation plant in the Metapan region of El Salvador.
Located in the hamlet of El Shiste in Santa Ana's Metapan municipality, the site is home to the country's outstanding solar and wind energy efficiency.
The power generation capacity will initially be used to build one of the largest Bitcoin mining farms in the world, with hashrate exceeding 1.3 EH/s. The project will follow a debt-free approach and 50% of the proceeds will be reinvested to expand power generation capacity and advance Bitcoin mining. The government of El Salvador will have a privileged participation of 23% of the revenues, while investors will own 27%.
*Not investment advice.