El Salvador Inaugurates First Bitcoin Mining Pool through Volcano Energy and Luxor Collaboration
This renewable energy Bitcoin mining initiative aims to generate electricity from renewable sources to power Bitcoin mining operations in the country.
- El Salvador introduces its inaugural Bitcoin mining pool via the Volcano Energy project, which will mine Bitcoin using Luxor Technology’s Lava Pool.
- A $1 billion renewable energy initiative, Volcano Energy aims to harness renewable power sources in El Salvador to sustain forthcoming Bitcoin mining endeavors.
- Luxor’s Hashrate Forward Marketplace will be used by Volcano Energy to buffer against market volatility through automated risk management strategies.
- The project anticipates contributing 23% of its net mining income to the El Salvador government and reinvest profits into energy infrastructure and transmission.
Renewable Energy Project
In a significant stride for its Bitcoin adoption strategy, El Salvador has officially launched its first local Bitcoin mining pool through the Volcano Energy project, in conjunction with Luxor Technology. This endeavor marks a notable development in the nation’s $1 billion renewable energy project, which earlier this year drew attention for gaining investment from stable coin issuer Tether. The initiative’s focal point is to generate electricity from renewable energy sources indigenous to El Salvador, with the aim of fueling future Bitcoin mining operations within the country.
Volcano Energy will leverage Luxor’s proficiency in delivering Bitcoin mining software and services, and will employ Luxor’s Hashrate Forward Marketplace, a mechanism used to navigate through market volatility utilizing automated risk management strategies. This is a technique already adopted by other significant Bitcoin mining operators.
El Salvador has a Bitcoin mining pool. 🌋🔌 Volcano Energy taps Luxor for a local BTC mining pool powered by renewable energy. https://t.co/kAZlk1cO17
— Cointelegraph (@Cointelegraph) October 4, 2023
Gerson Martinez, Chief Strategy Officer at Volcano Energy, stressed the company’s mission to establish an energy and Bitcoin mining entity that incrementally adds value to both investors and the citizenry of El Salvador. Correspondingly, Ethan Vera, Luxor’s Chief Operating Officer, underscored how the creation of Volcano Energy and the commencement of local Bitcoin mining substantiates Bitcoin’s principle of geographical decentralization.
Furthermore, the initiative implies that nations endowed with ample renewable energy resources could harness Bitcoin mining to enhance the financial dynamics of new energy ventures. Mining operations can serve as a “flexible buyer of first and last resort” for energy manufacturers and provide an alternative financial inflow.
Volcano Energy, as a public-private partnership, pledges to allocate 23% of its net mining income to the government of El Salvador. Profits accrued from mining are also slated for reinvestment into energy transmission and infrastructure, aiming to fuel economic and technological development within the nation.
The preliminary phase of the Volcano Energy project will see the construction of a 241-megawatt (MW) renewable energy park in Metapán, comprising 169 MWs of photovoltaic solar energy and 72 MWs of wind energy, with a long-term vision to utilize the country’s abundant geothermal energy.
El Salvador continues to establish itself as a pioneer in the integration of Bitcoin into its economic framework. The partnership between Volcano Energy and Luxor marks a critical step toward utilizing renewable energy for Bitcoin mining, potentially setting a precedent for other nations to follow in utilizing cryptocurrency mining as a viable means to enhance the economics of renewable energy projects while also contributing to economic and technological advancement.