Volcano Energy, a company based in El Salvador, has announced a public-private initiative to invest $1bn in a Bitcoin mining farm.
In a statement on Twitter, Volcano Energy said the proceeds will be used to set up a 241MW renewable energy project.
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Located within the municipality of Metapán, Santa Ana, the park will generate 72MW of wind energy and 169MW of photovoltaic solar energy.
With the initial investment of $250m from “key Bitcoin industry leaders”, the project is expected to power the Bitcoin mining farm.
Tether, an entity that operates a cryptocurrency pegged to the US dollar, is participating in the initiative, it said in a separate statement.
Initially, the mining farm is expected to have a computational power of over 1.3 exa hashes per second (EH/s).
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By GlobalDataBitcoin mining farms employ powerful computers that are connected to the internet and consume a significant amount of energy. The energy-intensive process has faced criticism from environmental groups, who fear it will worsen the climate crisis.
Volcano Energy chairman Max Keiser said: “El Salvador has the volcanoes, natural resources, the talent, and now the expertise and support of Tether to be a Bitcoin mining powerhouse. Bitcoin Country will now also be known as Bitcoin mining country.”
According to Volcano Energy, El Salvador’s government will be a key player in the planning and implementation of this project, and has secured a preferred share of up to 23% of the profits.
The investors will hold 27% of the project and the remaining 50% will be reinvested in increasing energy production capacity and enhancing Bitcoin mining.
Tether chief technology officer Paolo Ardoino said: “We are excited to be among the initial pioneers of renewable energy in El Salvador as an equity investor and advisor.
“Volcano Energy represents one of the most ground-breaking and strategic initiatives we are investing in and we look forward to working alongside [Volcano Energy CEO] Josue Lopez and his team to make El Salvador a global force in renewable energy production.”
