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An El Salvador-based Bitcoin firm has begun the first phase of a planned $1 billion investment into sustainably powered digital asset mining in the country.
The firm behind the project, “Volcano Energy,” said in a press release that its chief goal is to “position El Salvador as a prominent global player in the Bitcoin mining industry.”
A Special Anniversary Announcement
Volcano Energy’s announcement comes exactly two years after El Salvador President Nayib Bukele revealed that Bitcoin would be deemed legal tender across his country in June 2021.
So far, the firm has raised $250 million for the project, bootstrapped by “key Bitcoin industry leaders,” and “top manufacturers” of Bitcoin industry tech.
Right now, the company is developing a 241 MW capacity power generation facility powered solely by wind and solar, starting with a computational capacity of 1.3 EH/s. This will pave the way for geothermal-powered mining down the line.
Max Keiser – a member of El Salvador’s national Bitcoin Office – is now the Chairman of Volcano Energy. “The goal is economic liberty, self-determination & sovereign wealth accumulation for generations to come,” he said in a tweet regarding the raise.
El Salvador’s government will be involved with planning and executing the initiative and will earn 23% of the Bitcoin revenue it generates. Another 27% of revenues will go to investors, while the final 50% is reinvested into developing mining infrastructure.
El Salvador is occupied by more than a dozen volcanoes that its national government has already demonstrated being used to mine BTC.
Tether’s Involvement
The investment includes backing from Tether – the world’s largest stablecoin provider – which revealed last month that it was breaking into mining in Uruguay. Given Tether’s domination of the stablecoin space, the company reported a net profit of $1.5 billion in Q1 2023.
Tether CTO Paolo Ardoino clarified on Monday that its investment is “well within its own excess reserves,” and that all USDT tokens remain fully backed.
“The potential of El Salvador as the global energy and bitcoin hub is immense, and at Tether we’re grateful to be part of this opportunity,” he said.
Tether revealed last month that it is investing in sustainable Bitcoin mining in Uruguay, where it plans to leave a “minimal ecological footprint.”
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